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.

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%

NETS

4.4%

US Online Retail

2.3%

US Market


1 Year Return

33.6%

NETS

6.5%

US Online Retail

5.6%

US Market


Shareholder returns

NETSIndustryMarket
7 Day20.1%4.4%2.3%
30 Day91.7%-1.9%-1.0%
90 Day134.2%-5.1%-0.7%
1 Year33.6%33.6%6.5%6.5%7.9%5.6%
3 Yearn/a79.9%79.7%45.6%36.3%
5 Yearn/a177.5%165.8%65.8%47.6%

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 compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NETS ($3.7) is trading below our estimate of fair value ($16.2)

Significantly Undervalued: NETS is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NETS is unprofitable, so we can't compare its PE Ratio to the Online Retail industry average.

PE vs Market: NETS is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate NETS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NETS is overvalued based on its PB Ratio (4.9x) compared to the US Online Retail industry average (2.5x).


Next Steps

Future Growth

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

29.9%

Forecasted Retail industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if NETS's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if NETS's earnings are forecast to grow faster than the US market

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

Revenue vs Market: Insufficient data to determine if NETS's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if NETS's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


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

Earnings Trend: NETS is unprofitable, and losses have increased over the past 5 years at a rate of -28% per year.

Accelerating Growth: Unable to compare NETS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: NETS is unprofitable, making it difficult to compare its past year earnings growth to the Online Retail industry (-15.1%).


Return on Equity

High ROE: NETS has a negative Return on Equity (-372.62%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NETS is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NETS is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Netshoes (Cayman)'s financial position?


Financial Position Analysis

Short Term Liabilities: NETS's short term assets (R$488.8M) do not cover its short term liabilities (R$621.0M)

Long Term Liabilities: NETS's short term assets (488.8M) exceeds its long term liabilities (271.9M)


Debt to Equity History and Analysis

Debt Level: NETS's debt to equity ratio (299.5%) is considered high

Reducing Debt: Insufficient data to determine if NETS's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Information is not available.

Information is not available.


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.

Stable Cash Runway: Whilst unprofitable NETS has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NETS is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 2.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate NETS's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if NETS's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

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


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

Experienced Management: NETS's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

48yo

Average Age

Experienced Board: NETS's board of directors are not considered experienced ( 2.2 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

  • 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: 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: 1yrs

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.