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ARA

Consorcio ARA S. A. B. de C. V BMV:ARA * Stock Report

Last Price

Mex$3.37

Market Cap

Mex$4.2b

7D

3.7%

1Y

-23.9%

Updated

14 Aug, 2022

Data

Company Financials +
ARA * fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance3/6
Financial Health6/6
Dividends5/6

ARA * Stock Overview

Consorcio ARA, S. A. B. de C. V., together with its subsidiaries, designs, develops, builds, and sells entry-level and middle-income residential housing developments in Mexico.

Consorcio ARA S. A. B. de C. V Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Consorcio ARA S. A. B. de C. V
Historical stock prices
Current Share PriceMex$3.37
52 Week HighMex$4.80
52 Week LowMex$3.20
Beta0.69
1 Month Change1.20%
3 Month Change-12.47%
1 Year Change-23.93%
3 Year Change-9.89%
5 Year Change-43.93%
Change since IPO143.91%

Recent News & Updates

Shareholder Returns

ARA *MX Consumer DurablesMX Market
7D3.7%1.2%3.1%
1Y-23.9%-10.3%-0.5%

Return vs Industry: ARA * underperformed the MX Consumer Durables industry which returned -10.3% over the past year.

Return vs Market: ARA * underperformed the MX Market which returned -0.5% over the past year.

Price Volatility

Is ARA *'s price volatile compared to industry and market?
ARA * volatility
ARA * Average Weekly Movement4.9%
Consumer Durables Industry Average Movement6.5%
Market Average Movement4.2%
10% most volatile stocks in MX Market7.9%
10% least volatile stocks in MX Market3.0%

Stable Share Price: ARA * is not significantly more volatile than the rest of MX stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ARA *'s weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19772,728Miguel Guillermo Lozano Pardinashttps://consorcioara.com.mx

Consorcio ARA, S. A. B. de C. V., together with its subsidiaries, designs, develops, builds, and sells entry-level and middle-income residential housing developments in Mexico. The company also develops and leases shopping malls and commercial premises. As of December 31, 2020, it operated 6 shopping centers.

Consorcio ARA S. A. B. de C. V Fundamentals Summary

How do Consorcio ARA S. A. B. de C. V's earnings and revenue compare to its market cap?
ARA * fundamental statistics
Market CapMex$4.17b
Earnings (TTM)Mex$576.23m
Revenue (TTM)Mex$6.69b

7.2x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARA * income statement (TTM)
RevenueMex$6.69b
Cost of RevenueMex$4.95b
Gross ProfitMex$1.74b
Other ExpensesMex$1.16b
EarningsMex$576.23m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.47
Gross Margin25.98%
Net Profit Margin8.62%
Debt/Equity Ratio13.6%

How did ARA * perform over the long term?

See historical performance and comparison

Dividends

6.8%

Current Dividend Yield

48%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ARA *?

Other financial metrics that can be useful for relative valuation.

ARA * 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/Revenue0.4x
Enterprise Value/EBITDA4.1x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

How does ARA *'s PE Ratio compare to its peers?

ARA * PE Ratio vs Peers
The above table shows the PE ratio for ARA * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average27.9x
JAVER * Servicios Corporativos Javer. de
27x32.0%Mex$4.5b
VINTE * Vinte Viviendas Integrales. de
20.2xn/aMex$7.8b
CADU A Corpovael. de
9x70.0%Mex$641.5m
HOMEX * Desarrolladora Homex. de
55.6xn/aMex$158.0m
ARA * Consorcio ARA S. A. B. de C. V
7.2x12.5%Mex$4.2b

Price-To-Earnings vs Peers: ARA * is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (27.9x).


Price to Earnings Ratio vs Industry

How does ARA *'s PE Ratio compare vs other companies in the South American Consumer Durables Industry?

Price-To-Earnings vs Industry: ARA * is good value based on its Price-To-Earnings Ratio (7.2x) compared to the MX Consumer Durables industry average (15.5x)


Price to Earnings Ratio vs Fair Ratio

What is ARA *'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.

ARA * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio7.2x
Fair PE Ratio6.7x

Price-To-Earnings vs Fair Ratio: ARA * is expensive based on its Price-To-Earnings Ratio (7.2x) compared to the estimated Fair Price-To-Earnings Ratio (6.7x).


Share Price vs Fair Value

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

Below Fair Value: ARA * (MX$3.37) is trading above our estimate of fair value (MX$2.45)

Significantly Below Fair Value: ARA * is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Consorcio ARA S. A. B. de C. V forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

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


12.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARA *'s forecast earnings growth (12.5% per year) is above the savings rate (7.2%).

Earnings vs Market: ARA *'s earnings (12.5% per year) are forecast to grow faster than the MX market (10.5% per year).

High Growth Earnings: ARA *'s earnings are forecast to grow, but not significantly.

Revenue vs Market: ARA *'s revenue (6.9% per year) is forecast to grow faster than the MX market (6.2% per year).

High Growth Revenue: ARA *'s revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ARA *'s Return on Equity is forecast to be low in 3 years time (7.7%).


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Past Performance

How has Consorcio ARA S. A. B. de C. V performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-13.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ARA * has high quality earnings.

Growing Profit Margin: ARA *'s current net profit margins (8.6%) are lower than last year (8.7%).


Past Earnings Growth Analysis

Earnings Trend: ARA *'s earnings have declined by 13.6% per year over the past 5 years.

Accelerating Growth: ARA *'s earnings growth over the past year (10.4%) exceeds its 5-year average (-13.6% per year).

Earnings vs Industry: ARA * earnings growth over the past year (10.4%) exceeded the Consumer Durables industry -25%.


Return on Equity

High ROE: ARA *'s Return on Equity (4.1%) is considered low.


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Financial Health

How is Consorcio ARA S. A. B. de C. V's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ARA *'s short term assets (MX$15.3B) exceed its short term liabilities (MX$2.5B).

Long Term Liabilities: ARA *'s short term assets (MX$15.3B) exceed its long term liabilities (MX$5.0B).


Debt to Equity History and Analysis

Debt Level: ARA * has more cash than its total debt.

Reducing Debt: ARA *'s debt to equity ratio has reduced from 21.9% to 13.6% over the past 5 years.

Debt Coverage: ARA *'s debt is well covered by operating cash flow (28.9%).

Interest Coverage: ARA * earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Consorcio ARA S. A. B. de C. V current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


6.83%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ARA *'s dividend (6.83%) is higher than the bottom 25% of dividend payers in the MX market (2.14%).

High Dividend: ARA *'s dividend (6.83%) is in the top 25% of dividend payers in the MX market (6.07%)


Stability and Growth of Payments

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

Growing Dividend: ARA *'s dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (48.4%), ARA *'s dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (56.4%), ARA *'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?

18.3yrs

Average board tenure


CEO

Miguel Guillermo Lozano Pardinas (70 yo)

no data

Tenure

Mr. Miguel Guillermo Lozano Pardinas serves as Chief Operating Officer, Chief Executive Officer and Director at Consorcio ARA, S. A. B. de C. V. (Former Name: Consorcio ARA Sa De Cv) since April 26, 2017 a...


Board Members

Experienced Board: ARA *'s board of directors are seasoned and experienced ( 18.3 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.


Top Shareholders

Company Information

Consorcio ARA, S. A. B. de C. V.'s employee growth, exchange listings and data sources


Key Information

  • Name: Consorcio ARA, S. A. B. de C. V.
  • Ticker: ARA *
  • Exchange: BMV
  • Founded: 1977
  • Industry: Homebuilding
  • Sector: Consumer Durables
  • Implied Market Cap: Mex$4.170b
  • Shares outstanding: 1.24b
  • Website: https://consorcioara.com.mx

Number of Employees


Location

  • Consorcio ARA, S. A. B. de C. V.
  • Paseo Tamarindos 90, Tower 1
  • 25th Floor
  • Mexico City
  • Distrito Federal
  • 5120
  • Mexico

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.