OTCPK:QUCO.F

Stock Analysis Report

Quálitas Controladora. de

Executive Summary

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

Rewards

Trading at 20% below its fair value

Earnings grew by 71.9% over the past year

Risk Analysis

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

High level of non-cash earnings



Snowflake Analysis

Solid track record and fair value.


Similar Companies

Share Price & News

How has Quálitas Controladora. de's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

QUCO.F

2.2%

US Insurance

2.0%

US Market


1 Year Return

n/a

QUCO.F

19.7%

US Insurance

23.6%

US Market

Return vs Industry: Insufficient data to determine how QUCO.F performed against the US Insurance industry.

Return vs Market: Insufficient data to determine how QUCO.F performed against the US Market.


Shareholder returns

QUCO.FIndustryMarket
7 Day0%2.2%2.0%
30 Day0%1.8%3.9%
90 Day6.8%4.8%12.0%
1 Yearn/a22.8%19.7%26.2%23.6%
3 Yearn/a37.5%26.8%53.2%43.3%
5 Yearn/a74.8%53.8%75.7%56.3%

Price Volatility Vs. Market

How volatile is Quálitas Controladora. de's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Quálitas Controladora. de undervalued compared to its fair value and its price relative to the market?

19.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: QUCO.F ($4.2) is trading below our estimate of fair value ($5.25)

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


Price To Earnings Ratio

PE vs Industry: QUCO.F is good value based on its PE Ratio (9x) compared to the Insurance industry average (16.4x).

PE vs Market: QUCO.F is good value based on its PE Ratio (9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: QUCO.F is overvalued based on its PB Ratio (3x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

How is Quálitas Controladora. de forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: QUCO.F's revenue (5.1% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: QUCO.F's revenue (5.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: QUCO.F's Return on Equity is forecast to be high in 3 years time (27.3%)


Next Steps

Past Performance

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

40.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: QUCO.F has a high level of non-cash earnings.

Growing Profit Margin: QUCO.F's current net profit margins (12.9%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: QUCO.F's earnings have grown significantly by 40.6% per year over the past 5 years.

Accelerating Growth: QUCO.F's earnings growth over the past year (71.9%) exceeds its 5-year average (40.6% per year).

Earnings vs Industry: QUCO.F earnings growth over the past year (71.9%) exceeded the Insurance industry -11.3%.


Return on Equity

High ROE: QUCO.F's Return on Equity (36.7%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Quálitas Controladora. de'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: QUCO.F has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

Asset Level: QUCO.F's level of assets compared to its equity is low.

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

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

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

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

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


Next Steps

Dividend

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

1.07%

Current Dividend Yield


Dividend Yield vs Market

company1.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years6.3%

Current dividend yield vs market & industry

Notable Dividend: QUCO.F's dividend (1.07%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: QUCO.F's dividend (1.07%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

Growing Dividend: QUCO.F's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.7%), QUCO.F's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: QUCO.F's dividends in 3 years are forecast to be covered by earnings (83.8% payout ratio).


Next Steps

Management

What is the CEO of Quálitas Controladora. de's salary, the management and board of directors tenure and is there insider trading?

10.0yrs

Average board tenure


CEO

Jose Antonio Correa Etchegaray 0

0yrs

Tenure

0

Mr. José Antonio Correa Etchegaray has served as Chief Executive Officer at Quálitas Controladora, S.A.B. de C.V. Since January 2018, he is Chief Executive Officer of Quálitas Compañía de Seguros (Quálitas ...


Board Age and Tenure

10.0yrs

Average Tenure

Experienced Board: QUCO.F's board of directors are seasoned and experienced ( 10 years average tenure).


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

  • Wilfrido Javier Castillo Castillo Sánchez Mejorada

    VP of the Board and Head of Investor Relations & Special Projects

    • Joaquín Brockman Lozano

      Chairman of the Board & Executive President

      • Tenure: 26yrs
    • Noah Daniel Couttolenc Brockmann

      Chief Executive Officer of Quálitas Mexico

      • Xavier Mangino Dueñas (50yo)

        Secretary of the Board of Directors

        • María del Pilar Moreno Alanís

          Technical Director & Director

          • Tenure: 4yrs
        • Rosa María Morales Rojas

          Chief Executive Officer of Q ES/Q CR

          • Guadalupe Saad

            Human Resources Manager

            • Jose Antonio Correa Etchegaray

              Chief Executive Officer

              • Eduardo Pedrero

                Chief Executive Officer of Quálitas Insurance Company

                • Bernardo Risoul Salas

                  Chief Financial Officer

                  • Tenure: 1yrs

                Board Members

                • Juan Marco Gutiérrez Wanless (59yo)

                  Independent Director

                  • Tenure: 8yrs
                • Wilfrido Javier Castillo Castillo Sánchez Mejorada

                  VP of the Board and Head of Investor Relations & Special Projects

                  • Joaquín Brockman Lozano

                    Chairman of the Board & Executive President

                    • Tenure: 26yrs
                  • Juan Enrique Murguía Pozzi

                    Independent Director

                    • Tenure: 12yrs
                  • Juan Orozco Y Gómez Portugal

                    Independent Director

                    • Tenure: 12yrs
                  • Mauricio Domenge Gaudry

                    Independent Director

                    • Tenure: 12yrs
                  • María del Pilar Moreno Alanís

                    Technical Director & Director

                    • Tenure: 4yrs
                  • Madeleine Marthe Claude Brémond Santacruz

                    Independent Director

                    • Tenure: 4yrs
                  • Christian Alejandro del Castillo

                    Independent Director

                    • Tenure: 7yrs
                  • Alfonso Tomás Lebrija Guiot

                    Independent Director

                    Company Information

                    Quálitas Controladora, S.A.B. de C.V.'s company bio, employee growth, exchange listings and data sources


                    Key Information

                    • Name: Quálitas Controladora, S.A.B. de C.V.
                    • Ticker: QUCO.F
                    • Exchange: OTCPK
                    • Founded: 1993
                    • Industry: Property and Casualty Insurance
                    • Sector: Insurance
                    • Market Cap: Mex$33.572b
                    • Listing Market Cap: Mex$1.791b
                    • Shares outstanding: 420.97m
                    • Website: https://qinversionistas.qualitas.com.mx/portal/?lang=en

                    Number of Employees


                    Location

                    • Quálitas Controladora, S.A.B. de C.V.
                    • Av San Jerónimo 478
                    • Álvaro Obregón
                    • Mexico City
                    • Distrito Federal
                    • 1900
                    • Mexico

                    Listings

                    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                    Q *BMV (Bolsa Mexicana de Valores)YesClass I Fixed SharesMXMXNJul 2015
                    QUCO.FOTCPK (Pink Sheets LLC)YesClass I Fixed SharesUSUSDJul 2015

                    Biography

                    Quálitas Controladora, S.A.B. de C.V. operates as an auto insurance company in Mexico, El Salvador, Costa Rica, and the United States. The company offers insurance for automobile/pickups, motorcycles, tourists/cross-border, public service transportation, heavy equipment, passenger transportation, emergency services, cargo trucks, daily rents, and classic vehicles, as well as third party liability for automobiles and SUVs. It provides its products in various segments, including individuals, fleet, heavy equipment, financial institutions, and others. The company was founded in 1993 and is based in Mexico City, Mexico. 


                    Company Analysis and Financial Data Status

                    All financial data provided by Standard & Poor's Capital IQ.
                    DataLast Updated (UTC time)
                    Company Analysis2020/01/19 00:41
                    End of Day Share Price2019/12/04 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.