OTCPK:KLBA.Y

Stock Analysis Report

Executive Summary

Klabin S.A., together with its subsidiaries, operates in the paper and pulp industry in Brazil.

Snowflake

Fundamentals

High growth potential established dividend payer.


Similar Companies

Share Price & News

How has Klabin's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

4.8%

KLBA.Y

2.0%

US Packaging

0.5%

US Market


1 Year Return

n/a

KLBA.Y

16.6%

US Packaging

6.8%

US Market

Return vs Industry: Insufficient data to determine how KLBA.Y performed against the US Packaging industry.

Return vs Market: Insufficient data to determine how KLBA.Y performed against the US Market.


Shareholder returns

KLBA.YIndustryMarket
7 Day4.8%2.0%0.5%
30 Day3.7%2.5%-0.8%
90 Day-12.0%-0.0004%-0.9%
1 Yearn/a19.5%16.6%9.2%6.8%
3 Year-17.5%-25.9%25.5%17.6%45.6%36.2%
5 Year-4.3%-18.0%48.2%30.8%63.2%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Klabin undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KLBA.Y ($7.65) is trading below our estimate of fair value ($31.2)

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


Price To Earnings Ratio

PE vs Industry: KLBA.Y is poor value based on its PE Ratio (19x) compared to the Packaging industry average (17.4x).

PE vs Market: KLBA.Y is poor value based on its PE Ratio (19x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: KLBA.Y is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: KLBA.Y is good value based on its PB Ratio (2.7x) compared to the US Packaging industry average (3.5x).


Next Steps

Future Growth

How is Klabin forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

44.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KLBA.Y's forecast earnings growth (44.2% per year) is above the savings rate (2.7%).

Earnings vs Market: KLBA.Y's earnings (44.2% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KLBA.Y's revenue (7.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: KLBA.Y's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KLBA.Y's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has Klabin performed over the past 5 years?

-1.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KLBA.Y's earnings have declined by -1.9% per year over the past 5 years.

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

Earnings vs Industry: KLBA.Y has become profitable in the last year, making it difficult to compare its past year earnings growth to the Packaging industry (-1%).


Return on Equity

High ROE: KLBA.Y's Return on Equity (14.4%) is considered low.


Return on Assets

ROA vs Industry: KLBA.Y's Return on Assets is below or equal to the Packaging industry average last year.


Return on Capital Employed

ROCE Improving: KLBA.Y has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Klabin's financial position?


Financial Position Analysis

Short Term Liabilities: KLBA.Y's short term assets (R$15.4B) exceeds its short term liabilities (R$3.2B)

Long Term Liabilities: KLBA.Y's short term assets (15.4B) do not cover its long term liabilities (24.9B)


Debt to Equity History and Analysis

Debt Level: KLBA.Y's debt to equity ratio (396.6%) is considered high

Reducing Debt: KLBA.Y's debt to equity ratio has increased from 112.6% to 396.6% over the past 5 years.

Debt Coverage: KLBA.Y's debt is not well covered by operating cash flow (9.4%).

Interest Coverage: KLBA.Y's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet

Inventory Level: KLBA.Y has a high level of physical assets or inventory.

Debt Coverage by Assets: KLBA.Y's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Klabin's current dividend yield, its reliability and sustainability?

5.78%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Klabin before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.8%marketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years28.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KLBA.Y's dividend (5.78%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KLBA.Y's dividend (5.78%) is in the top 25% of dividend payers in the US market (3.73%)

Stable Dividend: KLBA.Y's dividend payments have been volatile in the past 10 years.

Growing Dividend: KLBA.Y's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.5%), KLBA.Y's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KLBA.Y's dividends in 3 years are forecast to be covered by earnings (65.9% payout ratio).


Next Steps

Management

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

1.8yrs

Average board tenure


CEO

Cristiano Teixeira 0

2.4yrs

Tenure

0

Mr. Cristiano Cardoso Teixeira has been Chief Executive Officer of Klabin S.A. since May 3, 2017 and serves as it Member of Executive Board. Mr. Teixeira has been Chief Financial and Investor Relations Off ...


Board Age and Tenure

1.8yrs

Average Tenure

Experienced Board: KLBA.Y's board of directors are not considered experienced ( 1.8 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


Management Team

  • Francisco Razzolini

    Director of Industrial Tech.

    • Tenure: 0yrs
  • Arthur Canhisares

    Industrial Paper Director & Member of Executive Board

    • Tenure: 0yrs
  • José Totti

    Forestry Director

    • Tenure: 0yrs
  • Sergio de Toledo Piza (55yo)

    People & Corporate Services Director

    • Tenure: 0yrs
  • Cristiano Teixeira

    CEO. Chief Financial & Investor Relations Officer and Member of Executive Board

    • Tenure: 2.4yrs
  • Fábio Medeiros

    Legal & Integrity Director

    • Tenure: 2.3yrs
  • Marcos Paulo Ivo

    Senior Financial Planning and M&A Manager

    • Tenure: 0yrs

Board Members

  • Armando Klabin

    Director

    • Tenure: 0yrs
  • Daniel Klabin

    Director

    • Tenure: 0yrs
  • Israel Klabin

    Chairman of the Board

    • Tenure: 0.3yrs
  • Roberto Klabin

    Independent Director

    • Tenure: 0yrs
  • Vera Lafer

    Director

    • Tenure: 0yrs
  • Paulo Sérgio Coutinho Filho

    Director

    • Tenure: 0yrs
  • Horacio Piva (59yo)

    Director

    • Tenure: 0yrs
  • Joaquim Monteiro de Carvalho Collor de Mello (41yo)

    Independent Director

    • Tenure: 1.8yrs
  • Sergio Francisco de Carvalho Guimarães

    Independent Director

    • Tenure: 14.6yrs
  • Roberto Martins Xavier

    Director

    • Tenure: 0yrs

Company Information

Klabin S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Klabin S.A.
  • Ticker: KLBA.Y
  • Exchange: OTCPK
  • Founded: 1899
  • Industry: Paper Packaging
  • Sector: Materials
  • Market Cap: R$17.266b
  • Listing Market Cap: R$4.167b
  • Shares outstanding: 5.27b
  • Website: https://www.klabin.com.br

Number of Employees


Location

  • Klabin S.A.
  • Avenida Brigadeiro Faria Lima, 3600
  • 3rd, 4th and 5th Floors
  • São Paulo
  • São Paulo
  • 04538-132
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KLBA.YOTCPK (Pink Sheets LLC)SPON ADR RP 2 UTUSUSDJan 1995
KLBN4BOVESPA (Bolsa de Valores de Sao Paulo)YesPreferred SharesBRBRLOct 2001
KLBN3BOVESPA (Bolsa de Valores de Sao Paulo)Common SharesBRBRLJan 2002
KLBN11BOVESPA (Bolsa de Valores de Sao Paulo)UnitsBRBRLJan 2014

Biography

Klabin S.A., together with its subsidiaries, operates in the paper and pulp industry in Brazil. It operates through Forestry, Paper, Conversion, and Pulp segments. The Forestry segment plants and grows pin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:48
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
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.