Quálitas Controladora. de (BMV:Q *) - Share price, News & Analysis

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

Q * Stock Overview

Quálitas Controladora, S.A.B. de C.V., together with its subsidiaries, operates as an auto insurance company in Mexico, El Salvador, Costa Rica, Peru, and the United States.

Rewards

Trading at 56.7% below our estimate of its fair value

Earnings are forecast to grow 11.08% per year

Risk Analysis

Dividend of 7.06% is not well covered by earnings

Profit margins (8.9%) are lower than last year (16.9%)

Quálitas Controladora. de Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Quálitas Controladora. de
Historical stock prices
Current Share Price	Mex$92.04
52 Week High	Mex$119.64
52 Week Low	Mex$89.09
Beta	1.23
1 Month Change	-10.36%
3 Month Change	-15.28%
1 Year Change	-0.57%
3 Year Change	70.79%
5 Year Change	205.07%
Change since IPO	493.81%

Recent News & Updates

Apr 28

Quálitas Controladora, S.A.B. de C.V. Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Quálitas Controladora, S.A.B. de C.V. ( BMV:Q ) last week released its latest quarterly, and things...

Shareholder Returns

	Q *	MX Insurance	MX Market
7D	-3.5%	-0.7%	-0.7%
1Y	-0.6%	-18.0%	0.4%

Return vs Industry: Q * exceeded the MX Insurance industry which returned -19.1% over the past year.

Return vs Market: Q * matched the MX Market which returned -1.4% over the past year.

Price Volatility

Is Q *'s price volatile compared to industry and market?
Q * volatility
Q * Average Weekly Movement	4.1%
Insurance Industry Average Movement	4.2%
Market Average Movement	4.6%
10% most volatile stocks in MX Market	8.2%
10% least volatile stocks in MX Market	2.6%

Stable Share Price: Q * is not significantly more volatile than the rest of MX stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: Q *'s weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1993	5,193	Jose Antonio Correa Etchegaray	https://www.qualitas.com.mx

Quálitas Controladora, S.A.B. de C.V., together with its subsidiaries, operates as an auto insurance company in Mexico, El Salvador, Costa Rica, Peru, and the United States. It offers insurance, coinsurance, and reinsurance services for the automobile sector. The company also engages in the acquisition, sale, and installation of automobile glass and spare parts; provision of salvage management and marketing; advisory and training services for investment planning and business management; and property leasing and acquisition.

Quálitas Controladora. de Fundamentals Summary

How do Quálitas Controladora. de's earnings and revenue compare to its market cap?
Q * fundamental statistics
Market Cap	Mex$36.51b
Earnings (TTM)	Mex$3.44b
Revenue (TTM)	Mex$38.50b

10.6x

P/E Ratio

0.9x

P/S Ratio

Is Q * overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
Q * income statement (TTM)
Revenue	Mex$38.50b
Cost of Revenue	Mex$33.37b
Gross Profit	Mex$5.14b
Other Expenses	Mex$1.70b
Earnings	Mex$3.44b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	8.65
Gross Margin	13.34%
Net Profit Margin	8.92%
Debt/Equity Ratio	0.0%

How did Q * perform over the long term?

See historical performance and comparison

Dividends

7.1%

Current Dividend Yield

69%

Payout Ratio

Does Q * pay a reliable dividends?

See Q * dividend history and benchmarks

When do you need to buy Q * by to receive an upcoming dividend?
Quálitas Controladora. de dividend dates
Ex Dividend Date	Nov 07 2022
Dividend Pay Date	Nov 09 2022
Days until Ex dividend	134 days
Days until Dividend pay date	136 days

Does Q * pay a reliable dividends?

See Q * dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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 Q *?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for Q *. This is calculated by dividing Q *'s market cap by their current preferred multiple.
What is Q *'s n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	Mex$36.51b

Q * 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	0.9x
Enterprise Value/EBITDA	7.3x
PEG Ratio	1x

Price to Earnings Ratio vs Peers

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

Q * PE Ratio vs Peers

The above table shows the PE ratio for Q * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	15.9x

Forward PE

Price-To-Earnings vs Peers: Q * is good value based on its Price-To-Earnings Ratio (10.6x) compared to the peer average (15.9x).

Price to Earnings Ratio vs Industry

How does Q *'s PE Ratio compare vs other companies in the Insurance Industry?

Price-To-Earnings vs Industry: Q * is good value based on its Price-To-Earnings Ratio (10.6x) compared to the South American Insurance industry average (11.7x)

Price to Earnings Ratio vs Fair Ratio

What is Q *'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.

Q * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate Q *'s Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: Q * (MX$92.04) is trading below our estimate of fair value (MX$212.8)

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

Price to Earnings Growth Ratio

PEG Ratio: Q * is good value based on its PEG Ratio (1x)

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Future Growth

How is Quálitas Controladora. de forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

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

11.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Q *'s forecast earnings growth (11.1% per year) is above the savings rate (7.1%).

Earnings vs Market: Q *'s earnings (11.1% per year) are forecast to grow faster than the MX market (10.7% per year).

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

Revenue vs Market: Q *'s revenue (7.8% per year) is forecast to grow faster than the MX market (6.2% per year).

High Growth Revenue: Q *'s revenue (7.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Q *'s Return on Equity is forecast to be high in 3 years time (21.5%)

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Past Performance

How has Quálitas Controladora. de performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

23.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: Q * has high quality earnings.

Growing Profit Margin: Q *'s current net profit margins (8.9%) are lower than last year (16.9%).

Past Earnings Growth Analysis

Earnings Trend: Q *'s earnings have grown significantly by 23.9% per year over the past 5 years.

Accelerating Growth: Q *'s has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: Q * had negative earnings growth (-46.5%) over the past year, making it difficult to compare to the Insurance industry average (-14.1%).

Return on Equity

High ROE: Q *'s Return on Equity (16.5%) is considered low.

Discover strong past performing companies

Financial Health

How is Quálitas Controladora. 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: Q *'s short term assets (MX$28.0B) exceed its short term liabilities (MX$13.7B).

Long Term Liabilities: Q *'s short term assets (MX$28.0B) do not cover its long term liabilities (MX$38.2B).

Debt to Equity History and Analysis

Debt Level: Q * is debt free.

Reducing Debt: Q * has not had any debt for past 5 years.

Debt Coverage: Q * has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: Q * has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Quálitas Controladora. de current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

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

7.06%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: Q *'s dividend (7.06%) is higher than the bottom 25% of dividend payers in the MX market (1.94%).

High Dividend: Q *'s dividend (7.06%) is in the top 25% of dividend payers in the MX market (5.89%)

Stability and Growth of Payments

Stable Dividend: Q * has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: Q *'s dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (68.6%), Q *'s dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (92.4%), Q *'s dividend payments are not well covered by cash flows.

Discover strong dividend paying companies

Management

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

7.6yrs

Average management tenure

CEO

Jose Antonio Correa Etchegaray (67 yo)

1.42yrs

Tenure

Mr. Jose Antonio Correa Etchegaray serves as President of the Board at Quálitas Controladora, S.A.B. de C.V. and serves as its Director since April 18, 2018. He served as Interim Chairman at Quálitas Contr...

Leadership Team

Experienced Management: Q *'s management team is seasoned and experienced (7.6 years average tenure).

Board Members

Experienced Board: Q *'s board of directors are considered experienced (6.2 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	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31