OTCPK:BBSE.Y

Stock Analysis Report

BB Seguridade Participações

Executive Summary

BB Seguridade Participações S.A., through its subsidiaries, invests in the insurance, pension plans, premium bonds, reinsurance, and dental insurance businesses in Brazil.

Rewards

PE ratio (11.6x) is below the US market (18.5x)

Revenue is forecast to grow 8.44% per year

Earnings grew by 66.5% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -3.6% per year for the next 3 years

High level of non-cash earnings

Unstable dividend track record



Snowflake Analysis

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has BB Seguridade Participações's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BBSE.Y has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

BBSE.Y

0.9%

US Insurance

0.7%

US Market


1 Year Return

21.5%

BBSE.Y

21.8%

US Insurance

18.2%

US Market

Return vs Industry: BBSE.Y matched the US Insurance industry which returned 21.8% over the past year.

Return vs Market: BBSE.Y exceeded the US Market which returned 18.2% over the past year.


Shareholder returns

BBSE.YIndustryMarket
7 Day0.5%0.9%0.7%
30 Day4.2%0.5%1.5%
90 Day5.5%1.3%5.0%
1 Year33.2%21.5%24.8%21.8%20.8%18.2%
3 Year36.2%12.9%32.5%22.3%45.2%35.8%
5 Year1.2%-24.1%69.5%49.3%71.6%52.7%

Price Volatility Vs. Market

How volatile is BB Seguridade Participações's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is BB Seguridade Participações undervalued compared to its fair value and its price relative to the market?

11.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BBSE.Y ($8.66) is trading above our estimate of fair value ($7.12)

Significantly Below Fair Value: BBSE.Y is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BBSE.Y is good value based on its PE Ratio (11.6x) compared to the Insurance industry average (16.7x).

PE vs Market: BBSE.Y is good value based on its PE Ratio (11.6x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: BBSE.Y's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BBSE.Y is overvalued based on its PB Ratio (6.8x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is BB Seguridade Participações forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBSE.Y's earnings are forecast to decline over the next 3 years (-3.6% per year).

Earnings vs Market: BBSE.Y's earnings are forecast to decline over the next 3 years (-3.6% per year).

High Growth Earnings: BBSE.Y's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BBSE.Y's revenue (8.4% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: BBSE.Y's revenue (8.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BBSE.Y's Return on Equity is forecast to be very high in 3 years time (47.1%).


Next Steps

Past Performance

How has BB Seguridade Participações performed over the past 5 years?

2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBSE.Y has a high level of non-cash earnings.

Growing Profit Margin: BBSE.Y's current net profit margins are higher than last year (79.5%).


Past Earnings Growth Analysis

Earnings Trend: BBSE.Y's earnings have grown by 2.8% per year over the past 5 years.

Accelerating Growth: BBSE.Y's earnings growth over the past year (66.5%) exceeds its 5-year average (2.8% per year).

Earnings vs Industry: BBSE.Y earnings growth over the past year (66.5%) exceeded the Insurance industry -10.4%.


Return on Equity

High ROE: BBSE.Y's Return on Equity (58.8%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BB Seguridade Participações's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BBSE.Y has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if BBSE.Y's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: BBSE.Y's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BBSE.Y has a sufficient allowance for bad loans.

Low Risk Liabilities: BBSE.Y reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BBSE.Y has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BBSE.Y has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BBSE.Y has an appropriate level of bad loans.


Next Steps

Dividend

What is BB Seguridade Participações's current dividend yield, its reliability and sustainability?

4.03%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years5.7%

Current dividend yield vs market & industry

Notable Dividend: BBSE.Y's dividend (4.03%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: BBSE.Y's dividend (4.03%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BBSE.Y has been paying a dividend for less than 10 years.

Growing Dividend: BBSE.Y's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.4%), BBSE.Y's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BBSE.Y's dividends in 3 years are forecast to be covered by earnings (76% payout ratio).


Next Steps

Management

What is the CEO of BB Seguridade Participações's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average board tenure


CEO

Bernardo De Silva Rothe 0

0yrs

Tenure

0

Mr. Bernardo de Azevedo Silva Rothe is the Chief Executive Officer of BB Seguridade Participações S.A and serves as its President of the Executive Board and serves as its Director. Mr Bernardo Rothe has be ...


Board Age and Tenure

2.7yrs

Average Tenure

53yo

Average Age

Experienced Board: BBSE.Y's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Insider Trading

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.


Management Team

  • Werner Süffert (45yo)

    CFO, Investor Relations Director & Member of Executive Board

    • Tenure: 0yrs
  • Pedro Bramont

    Chief Risk Officer

    • Tenure: 0yrs
  • Reinaldo Yokoyama (48yo)

    Chief Product Officer

    • Tenure: 0yrs
  • Rafael Sperendio

    Head of Investor Relations

    • Tenure: 0yrs
  • Bernardo De Silva Rothe

    CEO, President of the Executive Board & Director

    • Tenure: 0yrs

Board Members

  • Arnaldo Vollet (70yo)

    Independent Director

    • Tenure: 0yrs
  • Marcelo Dutra Labuto (48yo)

    President of the Board

    • Tenure: 6.8yrs
  • Isabel da Silva Ramos (44yo)

    Independent Director

    • Tenure: 6.1yrs
  • Giorgio Bampi (72yo)

    Independent Member of Fiscal Council

    • Tenure: 4.7yrs
  • Nerylson da Silva

    Director

    • Tenure: 0yrs
  • Lucinéia Possar (53yo)

    Member of Fiscal Council

    • Tenure: 0yrs
  • Carlos dos Santos

    Vice Chairman of the Board

    • Tenure: 0.7yrs
  • Bernardo De Silva Rothe

    CEO, President of the Executive Board & Director

    • Tenure: 0yrs
  • Bruno Dalcolmo

    Director

    • Tenure: 0.7yrs
  • Bruno Leal

    Director

    • Tenure: 0.7yrs

Company Information

BB Seguridade Participações S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BB Seguridade Participações S.A.
  • Ticker: BBSE.Y
  • Exchange: OTCPK
  • Founded: 2012
  • Industry: Multi-line Insurance
  • Sector: Insurance
  • Market Cap: R$72.257b
  • Listing Market Cap: R$17.437b
  • Shares outstanding: 2.00b
  • Website: https://www.bbseguridaderi.com.br

Location

  • BB Seguridade Participações S.A.
  • Banco do Brasil Building, Asa Norte
  • Bloco B, 3rd Floor
  • Brasilia
  • Distrito Federal
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBSE3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLApr 2013
BBSE.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2014

Biography

BB Seguridade Participações S.A., through its subsidiaries, invests in the insurance, pension plans, premium bonds, reinsurance, and dental insurance businesses in Brazil. It operates through two segments, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:51
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.