OTCPK:GBXP.Y

Stock Analysis Report

Executive Summary

Via Varejo S.A., together with its subsidiaries, engages in the retail of consumer electronics, home appliances, mobile phones, and furniture in Brazil.

Rewards

Trading at 53.4% below its fair value

Earnings are forecast to grow 95% per year

Risk Analysis

Interest payments are not well covered by earnings

Shares are highly illiquid



Snowflake Analysis

High growth potential and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

GBXP.Y

-1.6%

US Specialty Retail

-1.2%

US Market


1 Year Return

n/a

GBXP.Y

20.3%

US Specialty Retail

22.3%

US Market

Return vs Industry: Insufficient data to determine how GBXP.Y performed against the US Specialty Retail industry.

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


Shareholder returns

GBXP.YIndustryMarket
7 Day0%-1.6%-1.2%
30 Day9.7%-0.5%1.6%
90 Dayn/a4.3%8.8%
1 Yearn/a22.2%20.3%25.0%22.3%
3 Yearn/a45.2%37.8%49.9%40.3%
5 Yearn/a50.1%37.3%77.6%58.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

48.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GBXP.Y ($3) is trading below our estimate of fair value ($6.43)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GBXP.Y is overvalued based on its PB Ratio (11.6x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

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

96.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GBXP.Y is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: GBXP.Y is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GBXP.Y's is expected to become profitable in the next 3 years.

Revenue vs Market: GBXP.Y's revenue (9.9% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: GBXP.Y's revenue (9.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GBXP.Y's Return on Equity is forecast to be high in 3 years time (25.1%)


Next Steps

Past Performance

How has Via Varejo performed over the past 5 years?

-66.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GBXP.Y is currently unprofitable.

Growing Profit Margin: GBXP.Y is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GBXP.Y is unprofitable, and losses have increased over the past 5 years at a rate of -66.6% per year.

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

Earnings vs Industry: GBXP.Y is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (4.5%).


Return on Equity

High ROE: GBXP.Y has a negative Return on Equity (-57.06%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Via Varejo's financial position?


Financial Position Analysis

Short Term Liabilities: GBXP.Y's short term assets (R$10.8B) do not cover its short term liabilities (R$14.7B).

Long Term Liabilities: GBXP.Y's short term assets (R$10.8B) exceed its long term liabilities (R$5.6B).


Debt to Equity History and Analysis

Debt Level: GBXP.Y's debt to equity ratio (448.4%) is considered high.

Reducing Debt: GBXP.Y's debt to equity ratio has increased from 76.4% to 448.4% over the past 5 years.

Debt Coverage: GBXP.Y's debt is not well covered by operating cash flow (0.6%).

Interest Coverage: GBXP.Y is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: GBXP.Y's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

0.67%

Forecast Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0.7%

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: GBXP.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 GBXP.Y'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 Via Varejo's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Roberto Fulcherberguer 0

1yrs

Tenure

0

Mr. Roberto Fulcherberguer has been Director of Via Varejo S.A. since April 12, 2013 and has been its Chief Executive Officer and Member of Board of Executive Officers since 2019. He served as Commercial V ...


Management Age and Tenure

1.0yrs

Average Tenure

Experienced Management: GBXP.Y's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

3.9yrs

Average Tenure

Experienced Board: GBXP.Y's board of directors are considered experienced (3.9 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

  • Svetlana Berzina

    Senior Vice President

    • Tenure: 9.4yrs
  • Orivaldo Padilha

    CFO, IR Officer & Member of Board of Executive Officers

    • Tenure: 1yrs
  • Roberto Fulcherberguer

    CEO, Member of Board of Executive Officers & Director

    • Tenure: 1yrs
  • Felipe Negrão

    Member of Board of Executive Officers

    • Tenure: 4.9yrs
  • Abel Vieira

    VP of Sales & Operations and Member of Board of Executive Officers

    • Tenure: 1yrs
  • Sérgio Augusto Leme

    Administrative VP & Member of Board of Executive Officers

    • Tenure: 1yrs

Board Members

  • Michael Klein

    Chairman of the Board of Directors

    • Tenure: 1yrs
  • Alberto Ribeiro Guth (60yo)

    Independent Director

    • Tenure: 7.7yrs
  • Renato Carvalho Nascimento

    Independent Director

    • Tenure: 7.7yrs
  • Roberto Fulcherberguer

    CEO, Member of Board of Executive Officers & Director

    • Tenure: 1yrs
  • Carla Trematore

    Member of Fiscal Council

    • Tenure: 0.8yrs
  • Eduardo da Silva Flores

    Chairman of the Fiscal Council

    • Bruno Salotti

      Member of Fiscal Council

      • Tenure: 0.8yrs

    Company Information

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


    Key Information

    • Name: Via Varejo S.A.
    • Ticker: GBXP.Y
    • Exchange: OTCPK
    • Founded:
    • Industry: Home Improvement Retail
    • Sector: Retail
    • Market Cap: R$19.490b
    • Listing Market Cap: R$4.658b
    • Shares outstanding: 1.30b
    • Website: https://www.viavarejo.com.br

    Number of Employees


    Location

    • Via Varejo S.A.
    • Rua João Pessoa, nº 83
    • Centro
    • São Caetano do Sul
    • São Paulo
    • 09520-010
    • Brazil

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    VVAR3BOVESPA (Bolsa de Valores de Sao Paulo)YesCommon SharesBRBRLOct 1996
    GBXP.YOTCPK (Pink Sheets LLC)SPONSORED ADR REUSUSDMar 2000

    Biography

    Via Varejo S.A., together with its subsidiaries, engages in the retail of consumer electronics, home appliances, mobile phones, and furniture in Brazil. The company operates its stores under the Ponto Frio and Casas Bahia banners. As of March 31, 2018, it operated 978 stores. It also offers products through its e-commerce platforms, including pontofrio.com, casasbahia.com, extra.com.br, and barateiro.com. Via Varejo S.A. was formerly known as Globex Utilidades SA and changed its name to Via Varejo S.A. in February 2012. The company is based in São Caetano do Sul, Brazil.  


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/26 23:38
    End of Day Share Price2020/01/17 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.