Agroindustrial LaredoA (BVL:LAREDOC1) - Share price, News & Analysis

Q: What is the Fair Price of LAREDOC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

LAREDOC1 (PEN14.12) is trading below our estimate of [[fair value]] (PEN17.21)

LAREDOC1 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	0/6
Past Performance	4/6
Financial Health	3/6
Dividends	1/6

LAREDOC1 Stock Overview

Agroindustrial Laredo S.A.A. engages in the production and commercialization of refined sugar and other derivatives of sugar cane in Peru.

Rewards

Trading at 18% below our estimate of its fair value

Earnings grew by 88.8% over the past year

Risk Analysis

Earnings have declined by 0.7% per year over past 5 years

Dividend of 26.35% is not well covered by earnings or forecast to be in the next 3 years

Highly volatile share price over the past 3 months

Does not have a meaningful market cap (PEN163M)

Agroindustrial LaredoA Competitors

Empresa Agroindustrial PomalcaA

BVL:POMALCC1

S/109.7m

Agro Industrial ParamongaA

BVL:PARAMOC1

S/76.2m

Agrokasa Holdings

BVL:AGROKAC1

S/684.0m

CartavioA

BVL:CARTAVC1

S/765.0m

Price History & Performance

Summary of all time highs, changes and price drops for Agroindustrial LaredoA
Historical stock prices
Current Share Price	S/14.12
52 Week High	S/14.12
52 Week Low	S/11.20
Beta	-0.076
1 Month Change	0%
3 Month Change	32.58%
1 Year Change	26.07%
3 Year Change	12.96%
5 Year Change	-26.27%
Change since IPO	248.64%

Shareholder Returns

	LAREDOC1	PE Food	PE Market
7D	0%	3.0%	2.9%
1Y	26.1%	25.4%	19.0%

Return vs Industry: LAREDOC1 matched the PE Food industry which returned 25.4% over the past year.

Return vs Market: LAREDOC1 exceeded the PE Market which returned 19% over the past year.

Price Volatility

Is LAREDOC1's price volatile compared to industry and market?
LAREDOC1 volatility
LAREDOC1 Average Weekly Movement	9.3%
Food Industry Average Movement	6.0%
Market Average Movement	4.6%
10% most volatile stocks in PE Market	9.0%
10% least volatile stocks in PE Market	1.8%

Stable Share Price: LAREDOC1 is more volatile than 90% of PE stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: LAREDOC1's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of PE stocks.

About the Company

Founded	Employees	CEO	Website
1993	n/a	Patricia Garzón Gómez	https://www.agroindustriallaredo.com

Agroindustrial Laredo S.A.A. engages in the production and commercialization of refined sugar and other derivatives of sugar cane in Peru. The company offers refined sugar for use in the pharmaceutical sector, and for producing clear drinks and translucent candies; industrial sugar for companies that make sweets and dark sodas; and white domestic sugar, which is used for human consumption, as well as for companies that manufacture cookies, cakes, and other products. It also provides other derivative products, including extra neutral alcohol for the companies, which prepare food, beverages, and perfumery products; molasses that is used as raw material to make alcohol, as well as for use in various food purposes; and bagasse for paper companies.

Agroindustrial LaredoA Fundamentals Summary

How do Agroindustrial LaredoA's earnings and revenue compare to its market cap?
LAREDOC1 fundamental statistics
Market Cap	S/163.27m
Earnings (TTM)	S/31.29m
Revenue (TTM)	S/355.07m

5.2x

P/E Ratio

0.5x

P/S Ratio

Is LAREDOC1 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
LAREDOC1 income statement (TTM)
Revenue	S/355.07m
Cost of Revenue	S/283.89m
Gross Profit	S/71.18m
Other Expenses	S/39.89m
Earnings	S/31.29m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.71
Gross Margin	20.05%
Net Profit Margin	8.81%
Debt/Equity Ratio	25.6%

How did LAREDOC1 perform over the long term?

See historical performance and comparison

Dividends

26.3%

Current Dividend Yield

121%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is LAREDOC1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

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 LAREDOC1?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for LAREDOC1. This is calculated by dividing LAREDOC1's market cap by their current preferred multiple.
What is LAREDOC1's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S/163.27m

LAREDOC1 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	4.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does LAREDOC1's PE Ratio compare to its peers?

LAREDOC1 PE Ratio vs Peers

The above table shows the PE ratio for LAREDOC1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	4.7x
POMALCC1 Empresa Agroindustrial PomalcaA	2.8x	n/a	S/109.7m
PARAMOC1 Agro Industrial ParamongaA	1x	n/a	S/76.2m
AGROKAC1 Agrokasa Holdings	9.1x	n/a	S/684.0m
CARTAVC1 CartavioA	5.9x	n/a	S/765.0m
LAREDOC1 Agroindustrial LaredoA	5.2x	n/a	S/163.3m

Price-To-Earnings vs Peers: LAREDOC1 is expensive based on its Price-To-Earnings Ratio (5.2x) compared to the peer average (4.7x).

Price to Earnings Ratio vs Industry

How does LAREDOC1's PE Ratio compare vs other companies in the South American Food Industry?

Price-To-Earnings vs Industry: LAREDOC1 is expensive based on its Price-To-Earnings Ratio (5.2x) compared to the PE Food industry average (4x)

Price to Earnings Ratio vs Fair Ratio

What is LAREDOC1'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.

LAREDOC1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.2x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate LAREDOC1's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of LAREDOC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LAREDOC1 (PEN14.12) is trading below our estimate of fair value (PEN17.21)

Significantly Below Fair Value: LAREDOC1 is trading below fair value, but not by a significant amount.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Agroindustrial LaredoA forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

9.7%

Forecasted Food, Beverage & Tobacco industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Agroindustrial LaredoA has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Check out Agroindustrial LaredoA's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has Agroindustrial LaredoA 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

-0.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LAREDOC1 has high quality earnings.

Growing Profit Margin: LAREDOC1's current net profit margins (8.8%) are higher than last year (5.4%).

Past Earnings Growth Analysis

Earnings Trend: LAREDOC1's earnings have declined by 0.7% per year over the past 5 years.

Accelerating Growth: LAREDOC1's earnings growth over the past year (88.8%) exceeds its 5-year average (-0.7% per year).

Earnings vs Industry: LAREDOC1 earnings growth over the past year (88.8%) exceeded the Food industry 75.9%.

Return on Equity

High ROE: LAREDOC1's Return on Equity (6%) is considered low.

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Financial Health

How is Agroindustrial LaredoA's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: LAREDOC1's short term assets (PEN105.1M) do not cover its short term liabilities (PEN123.4M).

Long Term Liabilities: LAREDOC1's short term assets (PEN105.1M) do not cover its long term liabilities (PEN200.3M).

Debt to Equity History and Analysis

Debt Level: LAREDOC1's net debt to equity ratio (24.5%) is considered satisfactory.

Reducing Debt: LAREDOC1's debt to equity ratio has increased from 22.7% to 25.6% over the past 5 years.

Debt Coverage: LAREDOC1's debt is well covered by operating cash flow (36.3%).

Interest Coverage: LAREDOC1's interest payments on its debt are well covered by EBIT (6.7x coverage).

Balance Sheet

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Dividend

What is Agroindustrial LaredoA current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

26.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LAREDOC1's dividend (26.35%) is higher than the bottom 25% of dividend payers in the PE market (6.59%).

High Dividend: LAREDOC1's dividend (26.35%) is low compared to the top 25% of dividend payers in the PE market (26.67%).

Stability and Growth of Payments

Stable Dividend: LAREDOC1 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: LAREDOC1's dividend payments have increased, but the company has only paid a dividend for 9 years.

Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (121.2%), LAREDOC1's dividend payments are not well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (275.1%), LAREDOC1's dividend payments are not well covered by cash flows.

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Management

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

CEO

Patricia Garzón Gómez

no data

Tenure

Ms. Patricia Garzón Gómez serves as General Manager of Empresa Agroindustrial Laredo S.A.A.

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	2022/08/06 00:00
End of Day Share Price	2022/08/05 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31