NYSE:NETS

Stock Analysis Report

Executive Summary

Netshoes (Cayman) Limited, through its subsidiaries, operates as a sports and lifestyle online retailer in Brazil and Argentina.

Snowflake

Fundamentals

Mediocre balance sheet and slightly overvalued.

Risks

  • Netshoes (Cayman) has significant price volatility in the past 3 months.
  • Netshoes (Cayman) is not covered by any analysts.

Share Price & News

How has Netshoes (Cayman)'s share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

20.1%

NYSE:NETS

3.5%

US Online Retail

0.9%

US Market


1 Year Return

33.6%

NYSE:NETS

-1.5%

US Online Retail

0.3%

US Market

NETS outperformed the Online Retail industry which returned -6.3% over the past year.

NETS outperformed the Market in United States of America which returned 0.8% over the past year.


Share holder returns

NETSIndustryMarket
7 Day20.1%3.5%0.9%
30 Day91.7%-3.6%-1.9%
90 Day134.2%2.9%1.6%
1 Year33.6%33.6%-1.4%-1.5%2.6%0.3%
3 Yearn/a95.1%94.8%41.0%31.8%
5 Yearn/a216.7%194.1%55.2%38.0%

Price Volatility Vs. Market

How volatile is Netshoes (Cayman)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Netshoes (Cayman) undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Netshoes (Cayman)'s share price is below the future cash flow value, and at a moderate discount (> 20%).

Netshoes (Cayman)'s share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Netshoes (Cayman) is loss making, we can't compare its value to the US Online Retail industry average.

Netshoes (Cayman) is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Netshoes (Cayman), we can't assess if its growth is good value.


Price Based on Value of Assets

Netshoes (Cayman) is overvalued based on assets compared to the US Online Retail industry average.


Next Steps

Future Growth

How is Netshoes (Cayman) expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

29.2%

Forecasted Retail 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 Netshoes (Cayman) 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.


Next Steps

Past Performance

How has Netshoes (Cayman) performed over the past 5 years?

-28.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Netshoes (Cayman) does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Netshoes (Cayman)'s 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Netshoes (Cayman)'s 1-year growth to the US Online Retail industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Netshoes (Cayman) has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Netshoes (Cayman) has efficiently used its assets last year compared to the US Online Retail industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Netshoes (Cayman) improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Netshoes (Cayman)'s financial position?


Financial Position Analysis

Netshoes (Cayman)'s short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Netshoes (Cayman)'s cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Netshoes (Cayman)'s level of debt (299.5%) compared to net worth is high (greater than 40%).

Unable to establish if Netshoes (Cayman)'s debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.8x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making Netshoes (Cayman) has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Netshoes (Cayman) has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -2.5% per year.


Next Steps

Dividend

What is Netshoes (Cayman)'s current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Netshoes (Cayman)'s dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Netshoes (Cayman)'s dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Netshoes (Cayman) has not reported any payouts.

Unable to verify if Netshoes (Cayman)'s dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Netshoes (Cayman) has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Netshoes (Cayman)'s salary, the management and board of directors tenure and is there insider trading?

4.5yrs

Average management tenure


CEO

Marcio Kumruian (44yo)

19.4yrs

Tenure

0

Mr. Marcio Kumruian co-founded Netshoes (Cayman) Limited and has been its Chairman of the Board and Chief Executive Officer since 2000. Mr. Kumruian is responsible for leading Netshoes into becoming a lead ...


Management Age and Tenure

4.5yrs

Average Tenure

42.5yo

Average Age

The tenure for the Netshoes (Cayman) management team is about average.


Board Age and Tenure

2.2yrs

Average Tenure

48yo

Average Age

The average tenure for the Netshoes (Cayman) board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month insider trading information.


Ownership Breakdown


Management Team

  • Marcio Kumruian (44yo)

    Chairman & CEO

    • Tenure: 19.4yrs
  • Gabriela Garcia (40yo)

    Chief Business Transformation Officer

    • Tenure: 1.7yrs
  • Graciela Tanaka (41yo)

    Chief Operating Officer

    • Tenure: 7.4yrs
  • Alexandre Olivieri (46yo)

    Chief Financial Officer

    • Tenure: 1.3yrs
  • Otavio Lyra

    Director of Business Development & Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Nilesh Lakhani (58yo)

    Independent Director

    • Tenure: 6.2yrs
  • Andrew Jánszky (66yo)

    Director

    • Tenure: 0.7yrs
  • Ricardo Knoepfelmacher (52yo)

    Director

    • Tenure: 2.2yrs
  • Frederico Brito Abreu (39yo)

    Director

    • Tenure: 2.2yrs
  • Marcio Kumruian (44yo)

    Chairman & CEO

    • Tenure: 19.4yrs
  • Pedro Reiss (39yo)

    Director

    • Tenure: 1.0yrs

Company Information

Netshoes (Cayman) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Netshoes (Cayman) Limited
  • Ticker: NETS
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$114.908m
  • Shares outstanding: 31.06m
  • Website: https://www.netshoes.com.br

Number of Employees


Location

  • Netshoes (Cayman) Limited
  • Rua Vergueiro 961
  • Liberdade
  • São Paulo
  • São Paulo
  • 01504-001
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NETSNYSE (New York Stock Exchange)YesCommon SharesUSUSDApr 2017
4NCDB (Deutsche Boerse AG)YesCommon SharesDEEURApr 2017

Biography

Netshoes (Cayman) Limited, through its subsidiaries, operates as a sports and lifestyle online retailer in Brazil and Argentina. It offers various products, including athletic shoes, jerseys, apparels, acc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/17 01:12
End of Day Share Price2019/06/14 00:00
Earnings2019/03/31
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.