OTCPK:BRMS.Y

Stock Analysis Report

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Executive Summary

BR Malls Participações S.A. operates as a shopping mall company in Brazil.


Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BRMS.Y's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

BRMS.Y

5.4%

US Real Estate

1.1%

US Market


1 Year Return

-48.4%

BRMS.Y

-23.6%

US Real Estate

4.6%

US Market

Return vs Industry: BRMS.Y underperformed the US Real Estate industry which returned -23.6% over the past year.

Return vs Market: BRMS.Y underperformed the US Market which returned 4.6% over the past year.


Shareholder returns

BRMS.YIndustryMarket
7 Day0%5.4%1.1%
30 Day-10.8%4.7%5.5%
90 Day-59.0%-31.2%-4.9%
1 Year-46.2%-48.4%-23.1%-23.6%7.0%4.6%
3 Year-51.9%-54.7%-21.5%-23.2%28.6%20.1%
5 Year-44.9%-48.2%-30.3%-32.4%52.5%35.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is BR Malls Participações undervalued compared to its fair value and its price relative to the market?

6.54x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRMS.Y ($3.3) is trading above our estimate of fair value ($1.61)

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


Price To Earnings Ratio

PE vs Industry: BRMS.Y is good value based on its PE Ratio (6.5x) compared to the Real Estate industry average (14.4x).

PE vs Market: BRMS.Y is good value based on its PE Ratio (6.5x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BRMS.Y is good value based on its PB Ratio (0.8x) compared to the US Real Estate industry average (1x).


Next Steps

Future Growth

How is BR Malls Participações forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-28.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRMS.Y's earnings are forecast to decline over the next 3 years (-28.6% per year).

Earnings vs Market: BRMS.Y's earnings are forecast to decline over the next 3 years (-28.6% per year).

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

Revenue vs Market: BRMS.Y's revenue (0.5% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: BRMS.Y's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRMS.Y's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has BR Malls Participações performed over the past 5 years?

27.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRMS.Y has a large one-off gain of R$920.6M impacting its December 31 2019 financial results.

Growing Profit Margin: BRMS.Y's current net profit margins (89.1%) are higher than last year (82.4%).


Past Earnings Growth Analysis

Earnings Trend: BRMS.Y's earnings have grown significantly by 27.6% per year over the past 5 years.

Accelerating Growth: BRMS.Y's earnings growth over the past year (22.9%) is below its 5-year average (27.6% per year).

Earnings vs Industry: BRMS.Y earnings growth over the past year (22.9%) exceeded the Real Estate industry -6.4%.


Return on Equity

High ROE: BRMS.Y's Return on Equity (11.9%) is considered low.


Next Steps

Financial Health

How is BR Malls Participações's financial position?


Financial Position Analysis

Short Term Liabilities: BRMS.Y's short term assets (R$1.1B) exceed its short term liabilities (R$468.0M).

Long Term Liabilities: BRMS.Y's short term assets (R$1.1B) do not cover its long term liabilities (R$6.6B).


Debt to Equity History and Analysis

Debt Level: BRMS.Y's debt to equity ratio (23.6%) is considered satisfactory.

Reducing Debt: BRMS.Y's debt to equity ratio has reduced from 52.2% to 23.6% over the past 5 years.

Debt Coverage: BRMS.Y's debt is well covered by operating cash flow (31.5%).

Interest Coverage: BRMS.Y's interest payments on its debt are well covered by EBIT (5.2x coverage).


Balance Sheet


Next Steps

Dividend

What is BR Malls Participações's current dividend yield, its reliability and sustainability?

1.74%

Forecast Dividend Yield


Dividend Yield vs Market

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

High Dividend: Unable to evaluate BRMS.Y'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 BRMS.Y's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: BRMS.Y is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BRMS.Y's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Ruy Kameyama (42yo)

3yrs

Tenure

Mr. Ruy Kameyama has been the Chief Executive Officer at BR Malls Participações S.A. since February 5, 2017 and has been its Member of Board of Executive Officers since January 1, 2009. Mr. Kameyama served ...


Leadership Team

NamePositionTenureCompensationOwnership
Ruy Kameyama
Chief Executive Officer3yrsno datano data
Frederico da Villa
IR Director & CFO6.08yrsno datano data
Claudia Da Rosa Cortes De Larcerda
Law Director & Member of Board of Executive Officers7.08yrsno datano data
Bianca Bastos
Human Resources Director & Member of Board of Executive Officers3yrsno datano data
José Avellar
Operations Director3yrsno datano data
Mariane Grechinski
Development Director & Member of Board of Executive Officersno datano datano data

3.0yrs

Average Tenure

40.5yo

Average Age

Experienced Management: BRMS.Y's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mauro Rodrigues da Cunha
Independent Director4.08yrsno datano data
José Alves Castanheira
Independent Chairman2.08yrsno datano data
Luiz Quinta
Director8.08yrsno datano data
Bruno Hermes Da Rudge
Independent Director2.58yrsno datano data
Silvio Genesini Junior
Independent director1.5yrsno datano data
Joaé Roberto Teixeira
Independent Director2.58yrsno datano data
Luiz de Sampaio Campos
Independent director2.08yrsno datano data
Ana Maria Dantas
Member of Fiscal Council1.08yrsno datano data
Helena Turola de Penna
Member of the Fiscal Council1.08yrsno datano data
Ilton Schwaab
Member of Fiscal Council1.08yrsno datano data

2.1yrs

Average Tenure

63.5yo

Average Age

Experienced Board: BRMS.Y's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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.


Top Shareholders

Company Information

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


Key Information

  • Name: BR Malls Participações S.A.
  • Ticker: BRMS.Y
  • Exchange: OTCPK
  • Founded: 1949
  • Industry: Real Estate Operating Companies
  • Sector: Real Estate
  • Market Cap: R$8.461b
  • Listing Market Cap: R$1.573b
  • Shares outstanding: 843.54m
  • Website: https://www.brmalls.com.br

Number of Employees


Location

  • BR Malls Participações S.A.
  • Av. Borges de Medeiros, 633
  • 1° andar
  • Rio de Janeiro
  • Rio de Janeiro
  • 22430-041
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRML3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLApr 2007
BRLP.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 2007
BRMS.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDDec 2008

Biography

BR Malls Participações S.A. operates as a shopping mall company in Brazil. It also manages parking lot operation. As of March 16, 2018, it owned a portfolio of 39 malls comprising 1,445.5 thousand square meters of gross leasable area and 877.1 thousand square meters of gross leasable area. The company was founded in 1949 and is headquartered in Rio de Janeiro, Brazil. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 13:28
End of Day Share Price2020/05/20 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.