Grupo Industrial Saltillo. de (BMV:GISSA A) - Share price, News & Analysis

Q: What is the Fair Price of GISSA A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

GISSA A (MX$27.65) is trading below our estimate of [[fair value]] (MX$38.88)

GISSA A fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	3/6
Past Performance	4/6
Financial Health	5/6
Dividends	2/6

GISSA A Stock Overview

Grupo Industrial Saltillo, S.A.B. de C.V.

Rewards

Trading at 28.9% below our estimate of its fair value

Earnings are forecast to grow 26.22% per year

Earnings grew by 218.4% over the past year

Risk Analysis

Dividend of 4.98% is not well covered by earnings

Volatile share price over the past 3 months

Grupo Industrial Saltillo. de Competitors

Sansera Engineering

NSEI:SANSERA

₹35.4b

Shanghai Lianming Machinery

SHSE:603006

CN¥2.4b

Tung Thih Electronic

TPEX:3552

NT$14.0b

Shandong Longji MachineryLtd

SZSE:002363

CN¥2.9b

Price History & Performance

Summary of all time highs, changes and price drops for Grupo Industrial Saltillo. de
Historical stock prices
Current Share Price	Mex$27.65
52 Week High	Mex$32.20
52 Week Low	Mex$20.90
Beta	0.38
1 Month Change	25.68%
3 Month Change	2.52%
1 Year Change	-11.94%
3 Year Change	31.79%
5 Year Change	-33.45%
Change since IPO	24.83%

Shareholder Returns

	GISSA A	MX Auto Components	MX Market
7D	-0.5%	1.2%	1.7%
1Y	-11.9%	-26.1%	1.3%

Return vs Industry: GISSA A exceeded the MX Auto Components industry which returned -23.7% over the past year.

Return vs Market: GISSA A underperformed the MX Market which returned 1.6% over the past year.

Price Volatility

Is GISSA A's price volatile compared to industry and market?
GISSA A volatility
GISSA A Average Weekly Movement	6.6%
Auto Components Industry Average Movement	6.1%
Market Average Movement	4.6%
10% most volatile stocks in MX Market	7.9%
10% least volatile stocks in MX Market	2.7%

Stable Share Price: GISSA A is more volatile than 75% of MX stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: GISSA A's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of MX stocks.

About the Company

Founded	Employees	CEO	Website
1928	6,910	Manuel Rivera Garza	https://www.gis.com.mx

Grupo Industrial Saltillo, S.A.B. de C.V. engages in the design, manufacture, wholesale, and market of products for automotive, construction, and houseware industries in Mexico, Europe, and Asia. The company manufactures and markets grey and ductile iron and aluminum castings and machining parts, as well as auto parts for brakes, engines, and transmission and suspension systems for the automotive and commercial vehicle industries. It offers auto parts under the Draxton name.

Grupo Industrial Saltillo. de Fundamentals Summary

How do Grupo Industrial Saltillo. de's earnings and revenue compare to its market cap?
GISSA A fundamental statistics
Market Cap	US$434.62m
Earnings (TTM)	US$12.48m
Revenue (TTM)	US$1.05b

34.8x

P/E Ratio

0.4x

P/S Ratio

Is GISSA A overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
GISSA A income statement (TTM)
Revenue	US$1.05b
Cost of Revenue	US$893.83m
Gross Profit	US$152.03m
Other Expenses	US$139.55m
Earnings	US$12.48m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.039
Gross Margin	14.54%
Net Profit Margin	1.19%
Debt/Equity Ratio	40.2%

How did GISSA A perform over the long term?

See historical performance and comparison

Dividends

5.0%

Current Dividend Yield

176%

Payout Ratio

Does GISSA A pay a reliable dividends?

See GISSA A dividend history and benchmarks

When do you need to buy GISSA A by to receive an upcoming dividend?
Grupo Industrial Saltillo. de dividend dates
Ex Dividend Date	Oct 04 2022
Dividend Pay Date	Oct 06 2022
Days until Ex dividend	96 days
Days until Dividend pay date	98 days

Does GISSA A pay a reliable dividends?

See GISSA A dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is GISSA A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GISSA A?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for GISSA A. This is calculated by dividing GISSA A's market cap by their current preferred multiple.
What is GISSA A's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$434.62m

GISSA A key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	6.5x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does GISSA A's PE Ratio compare to its peers?

GISSA A PE Ratio vs Peers

The above table shows the PE ratio for GISSA A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	41.9x
SANSERA Sansera Engineering	27.1x	33.6%	₹35.4b
603006 Shanghai Lianming Machinery	18.7x	n/a	CN¥2.4b
3552 Tung Thih Electronic	28x	34.2%	NT$14.0b
002363 Shandong Longji MachineryLtd	96.1x	n/a	CN¥2.9b
GISSA A Grupo Industrial Saltillo. de	34.8x	26.2%	Mex$8.8b

Forward PE

Price-To-Earnings vs Peers: GISSA A is good value based on its Price-To-Earnings Ratio (34.8x) compared to the peer average (41.9x).

Price to Earnings Ratio vs Industry

How does GISSA A's PE Ratio compare vs other companies in the Global Auto Components Industry?

Price-To-Earnings vs Industry: GISSA A is expensive based on its Price-To-Earnings Ratio (34.8x) compared to the Global Auto Components industry average (19.7x)

Price to Earnings Ratio vs Fair Ratio

What is GISSA A's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GISSA A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	34.8x
Fair PE Ratio	13.6x

Price-To-Earnings vs Fair Ratio: GISSA A is expensive based on its Price-To-Earnings Ratio (34.8x) compared to the estimated Fair Price-To-Earnings Ratio (13.6x).

Share Price vs Fair Value

What is the Fair Price of GISSA A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GISSA A (MX$27.65) is trading below our estimate of fair value (MX$38.88)

Significantly Below Fair Value: GISSA A is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: GISSA A is poor value based on its PEG Ratio (1.3x)

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Future Growth

How is Grupo Industrial Saltillo. de forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

26.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: GISSA A's forecast earnings growth (26.2% per year) is above the savings rate (7.1%).

Earnings vs Market: GISSA A's earnings (26.2% per year) are forecast to grow faster than the MX market (9.9% per year).

High Growth Earnings: GISSA A's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GISSA A's revenue (4.3% per year) is forecast to grow slower than the MX market (6.2% per year).

High Growth Revenue: GISSA A's revenue (4.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: GISSA A's Return on Equity is forecast to be low in 3 years time (6.3%).

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Past Performance

How has Grupo Industrial Saltillo. de performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-45.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GISSA A has high quality earnings.

Growing Profit Margin: GISSA A's current net profit margins (1.2%) are higher than last year (0.5%).

Past Earnings Growth Analysis

Earnings Trend: GISSA A's earnings have declined by 45.4% per year over the past 5 years.

Accelerating Growth: GISSA A's earnings growth over the past year (218.4%) exceeds its 5-year average (-45.4% per year).

Earnings vs Industry: GISSA A earnings growth over the past year (218.4%) exceeded the Auto Components industry 7.3%.

Return on Equity

High ROE: GISSA A's Return on Equity (2.8%) is considered low.

Discover strong past performing companies

Financial Health

How is Grupo Industrial Saltillo. de's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: GISSA A's short term assets ($376.8M) exceed its short term liabilities ($342.2M).

Long Term Liabilities: GISSA A's short term assets ($376.8M) exceed its long term liabilities ($300.9M).

Debt to Equity History and Analysis

Debt Level: GISSA A's net debt to equity ratio (29.8%) is considered satisfactory.

Reducing Debt: GISSA A's debt to equity ratio has reduced from 53.1% to 40.2% over the past 5 years.

Debt Coverage: GISSA A's debt is well covered by operating cash flow (37.5%).

Interest Coverage: GISSA A's interest payments on its debt are not well covered by EBIT (1.9x coverage).

Balance Sheet

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Dividend

What is Grupo Industrial Saltillo. de current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

4.98%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: GISSA A's dividend (4.98%) is higher than the bottom 25% of dividend payers in the MX market (1.91%).

High Dividend: GISSA A's dividend (4.98%) is low compared to the top 25% of dividend payers in the MX market (5.99%).

Stability and Growth of Payments

Stable Dividend: GISSA A's dividend payments have been volatile in the past 10 years.

Growing Dividend: GISSA A's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (175.9%), GISSA A's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (72.3%), GISSA A's dividend payments are covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure

CEO

Manuel Rivera Garza (73 yo)

3.17yrs

Tenure

Mr. Manuel Rivera Garza served as a Senior Vice President of Business Development at Alfa S.A.B de C.V. Mr. Rivera Garza joined ALFA S.A.B de C.V., in 1976 where he occupied various positions like Planning...

Leadership Team

Experienced Management: GISSA A's management team is considered experienced (2.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31