Empresa Agroindustrial PomalcaA (BVL:POMALCC1) - Share price, News & Analysis

Q: What is the Fair Price of POMALCC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

POMALCC1 (PEN0.33) is trading below our estimate of [[fair value]] (PEN5.86)

POMALCC1 fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	2/6
Financial Health	4/6
Dividends	0/6

POMALCC1 Stock Overview

Empresa Agroindustrial Pomalca S.A.A. produces and sells sugar in Peru.

Rewards

Trading at 94.4% below our estimate of its fair value

Became profitable this year

Risk Analysis

Highly volatile share price over the past 3 months

Large one-off items impacting financial results

Does not have a meaningful market cap (PEN104M)

Empresa Agroindustrial PomalcaA Competitors

Agro Industrial ParamongaA

BVL:PARAMOC1

S/76.2m

Agroindustrial LaredoA

BVL:LAREDOC1

S/163.3m

Empresa Agrícola Sintuco

BVL:SINTUC1

S/36.8m

Empresa Agrícola San Juan

BVL:ASJUANC1

S/31.2m

Price History & Performance

Summary of all time highs, changes and price drops for Empresa Agroindustrial PomalcaA
Historical stock prices
Current Share Price	S/0.33
52 Week High	S/0.34
52 Week Low	S/0.065
Beta	0.44
1 Month Change	73.68%
3 Month Change	134.04%
1 Year Change	283.72%
3 Year Change	415.63%
5 Year Change	161.91%
Change since IPO	-49.23%

Shareholder Returns

	POMALCC1	PE Food	PE Market
7D	3.1%	-0.5%	-0.2%
1Y	283.7%	20.3%	10.8%

Return vs Industry: POMALCC1 exceeded the PE Food industry which returned 20.3% over the past year.

Return vs Market: POMALCC1 exceeded the PE Market which returned 10.8% over the past year.

Price Volatility

Is POMALCC1's price volatile compared to industry and market?
POMALCC1 volatility
POMALCC1 Average Weekly Movement	11.7%
Food Industry Average Movement	7.1%
Market Average Movement	4.8%
10% most volatile stocks in PE Market	9.3%
10% least volatile stocks in PE Market	1.9%

Stable Share Price: POMALCC1 is more volatile than 90% of PE stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: POMALCC1's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of PE stocks.

About the Company

Founded	Employees	CEO	Website
n/a	n/a	Victor Antonio Becerril Rodríguez	https://www.pomalca.com.pe

Empresa Agroindustrial Pomalca S.A.A. produces and sells sugar in Peru. It also provides sugar derivative products, such as molasses, chancaca, and bagasse. The company is based in Chiclayo, Peru.

Empresa Agroindustrial PomalcaA Fundamentals Summary

How do Empresa Agroindustrial PomalcaA's earnings and revenue compare to its market cap?
POMALCC1 fundamental statistics
Market Cap	S/103.99m
Earnings (TTM)	S/39.38m
Revenue (TTM)	S/159.49m

2.6x

P/E Ratio

0.7x

P/S Ratio

Is POMALCC1 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
POMALCC1 income statement (TTM)
Revenue	S/159.49m
Cost of Revenue	S/96.35m
Gross Profit	S/63.14m
Other Expenses	S/23.76m
Earnings	S/39.38m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.12
Gross Margin	39.59%
Net Profit Margin	24.69%
Debt/Equity Ratio	0.0%

How did POMALCC1 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is POMALCC1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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 POMALCC1?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for POMALCC1. This is calculated by dividing POMALCC1's market cap by their current preferred multiple.
What is POMALCC1's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S/103.99m

POMALCC1 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	0.5x
Enterprise Value/EBITDA	2.5x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does POMALCC1's PE Ratio compare to its peers?

POMALCC1 PE Ratio vs Peers

The above table shows the PE ratio for POMALCC1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	3.4x
PARAMOC1 Agro Industrial ParamongaA	1x	n/a	S/76.2m
LAREDOC1 Agroindustrial LaredoA	5.2x	n/a	S/163.3m
SINTUC1 Empresa Agrícola Sintuco	4.7x	n/a	S/36.8m
ASJUANC1 Empresa Agrícola San Juan	2.7x	n/a	S/31.2m
POMALCC1 Empresa Agroindustrial PomalcaA	2.6x	n/a	S/104.0m

Price-To-Earnings vs Peers: POMALCC1 is good value based on its Price-To-Earnings Ratio (2.6x) compared to the peer average (3.4x).

Price to Earnings Ratio vs Industry

How does POMALCC1's PE Ratio compare vs other companies in the South American Food Industry?

Price-To-Earnings vs Industry: POMALCC1 is good value based on its Price-To-Earnings Ratio (2.6x) compared to the PE Food industry average (3.9x)

Price to Earnings Ratio vs Fair Ratio

What is POMALCC1'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.

POMALCC1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate POMALCC1's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of POMALCC1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: POMALCC1 (PEN0.33) is trading below our estimate of fair value (PEN5.86)

Significantly Below Fair Value: POMALCC1 is trading below fair value by more than 20%.

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 Empresa Agroindustrial PomalcaA 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

9.1%

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 Empresa Agroindustrial PomalcaA 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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Examine whether Empresa Agroindustrial PomalcaA is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.

Past Performance

How has Empresa Agroindustrial PomalcaA 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

18.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: POMALCC1 has a large one-off gain of PEN19.0M impacting its June 30 2022 financial results.

Growing Profit Margin: POMALCC1 became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: POMALCC1 has become profitable over the past 5 years, growing earnings by 18% per year.

Accelerating Growth: POMALCC1 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: POMALCC1 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Food industry (75.9%).

Return on Equity

High ROE: POMALCC1's Return on Equity (6.3%) is considered low.

Discover strong past performing companies

Financial Health

How is Empresa Agroindustrial PomalcaA's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

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

Financial Position Analysis

Short Term Liabilities: POMALCC1's short term assets (PEN108.7M) do not cover its short term liabilities (PEN130.1M).

Long Term Liabilities: POMALCC1's short term assets (PEN108.7M) do not cover its long term liabilities (PEN511.0M).

Debt to Equity History and Analysis

Debt Level: POMALCC1 is debt free.

Reducing Debt: POMALCC1 has no debt compared to 5 years ago when its debt to equity ratio was 0%.

Debt Coverage: POMALCC1 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: POMALCC1 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

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

Dividend Yield vs Market

Notable Dividend: Unable to evaluate POMALCC1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate POMALCC1's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if POMALCC1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if POMALCC1's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as POMALCC1 has not reported any payouts.

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Management

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

CEO

Victor Antonio Becerril Rodríguez

no data

Tenure

Mr. Victor Antonio Becerril Rodríguez serves as Chief Executive Officer at Empresa Agroindustrial Pomalca 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	2022/07/30 00:00
End of Day Share Price	2022/07/27 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31