OTCPK:RUMO.F

Stock Analysis Report

Executive Summary

Rumo S.A., through its subsidiaries, provides rail transportation services.


Snowflake Analysis

Solid track record with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RUMO.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

RUMO.F

-2.4%

US Transportation

-2.6%

US Market


1 Year Return

n/a

RUMO.F

-18.4%

US Transportation

-13.3%

US Market

Return vs Industry: Insufficient data to determine how RUMO.F performed against the US Transportation industry.

Return vs Market: Insufficient data to determine how RUMO.F performed against the US Market.


Shareholder returns

RUMO.FIndustryMarket
7 Day0%-2.4%-2.6%
30 Day0%-13.6%-15.2%
90 Day0%-22.2%-22.2%
1 Yearn/a-17.0%-18.4%-11.5%-13.3%
3 Yearn/a31.7%25.2%13.2%5.7%
5 Yearn/a37.0%36.0%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

52.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RUMO.F ($5.49) is trading above our estimate of fair value ($4.48)

Significantly Below Fair Value: RUMO.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RUMO.F is poor value based on its PE Ratio (52.2x) compared to the Transportation industry average (20.3x).

PE vs Market: RUMO.F is poor value based on its PE Ratio (52.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: RUMO.F is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: RUMO.F is overvalued based on its PB Ratio (4.6x) compared to the US Transportation industry average (2.5x).


Next Steps

Future Growth

How is Rumo forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

29.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RUMO.F's forecast earnings growth (29.3% per year) is above the savings rate (2.7%).

Earnings vs Market: RUMO.F's earnings (29.3% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: RUMO.F's revenue (10.9% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: RUMO.F's revenue (10.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RUMO.F's Return on Equity is forecast to be low in 3 years time (14.1%).


Next Steps

Past Performance

How has Rumo performed over the past 5 years?

54.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RUMO.F has high quality earnings.

Growing Profit Margin: RUMO.F's current net profit margins (10.1%) are higher than last year (1.1%).


Past Earnings Growth Analysis

Earnings Trend: RUMO.F has become profitable over the past 5 years, growing earnings by 54.5% per year.

Accelerating Growth: RUMO.F's earnings growth over the past year (852.5%) exceeds its 5-year average (54.5% per year).

Earnings vs Industry: RUMO.F earnings growth over the past year (852.5%) exceeded the Transportation industry -45%.


Return on Equity

High ROE: RUMO.F's Return on Equity (8.6%) is considered low.


Next Steps

Financial Health

How is Rumo's financial position?


Financial Position Analysis

Short Term Liabilities: RUMO.F's short term assets (R$3.8B) exceed its short term liabilities (R$2.8B).

Long Term Liabilities: RUMO.F's short term assets (R$3.8B) do not cover its long term liabilities (R$20.5B).


Debt to Equity History and Analysis

Debt Level: RUMO.F's debt to equity ratio (129.6%) is considered high.

Reducing Debt: RUMO.F's debt to equity ratio has reduced from 153.1% to 129.6% over the past 5 years.

Debt Coverage: RUMO.F's debt is well covered by operating cash flow (29.7%).

Interest Coverage: RUMO.F's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

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

0.84%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if RUMO.F'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 RUMO.F'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?

6.0yrs

Average management tenure


CEO

João Alberto de Abreu

0.58

Tenure

Mr. João Alberto Fernandez De Abreu has been Chief Executive Officer of Rumo Malha Norte S.A. since 2019. He has been Chief Executive Officer of Rumo S.A. since April 1, 2019. He has been Chief Operating O ...


Leadership Team

NamePositionTenureCompensationOwnership
João Alberto de Abreu
Chief Executive Officer0.58yrno datano data
Ricardo Lewin
VP of Finance and Chief Financial & Investor Relations Officerno datano datano data
Alexandre Zanelatto
Vice President of Operations10.83yrsno datano data
Marcos da Costa
Chief Services & Technology Officer and VP of Services & Technologyno datano datano data
Eduardo Filho
Vice President of Human Resourcesno datano datano data
Rodrigo de Moura Campos
Financial & Investor Relations Officerno datano datano data
Sergio Nahuz
Chief Commercial Officer & VP of Agricultural Commodities7.33yrsno datano data
José Cezario de Barros Sobrinho
Chief Investor Relations Officer4.67yrsno datano data
Pedro Roberto Almeida
Personnel & Institutional Relations Officerno datano datano data
Roberta Ehlers
Investor Relations Analystno datano datano data

6.0yrs

Average Tenure

Experienced Management: RUMO.F's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Abel Halpern
Independent Director0.83yrno datano data
Riccardo Arduini
Director22.58yrsno datano data
Julio Neto
Directorno datano datano data
Marcos Lutz
Vice-Chairmanno datano datano data
Rubens Ometto de Mello
Chairman of the Board of Directorsno datano datano data
Burkhard Cordes
Directorno datano datano data
Sameh Fahmy
Independent Director2.25yrsno datano data
Marcelo Martins
Directorno datano datano data
Luiz Nannini
Chairman of Fiscal Councilno datano datano data
Marcelo de Souza Portela
Directorno datano datano data

2.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: RUMO.F's board of directors are not considered experienced ( 2.3 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

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


Key Information

  • Name: Rumo S.A.
  • Ticker: RUMO.F
  • Exchange: OTCPK
  • Founded: 1997
  • Industry: Railroads
  • Sector: Transportation
  • Market Cap: R$37.105b
  • Listing Market Cap: R$8.841b
  • Shares outstanding: 1.56b
  • Website: https://pt.rumolog.com

Number of Employees


Location

  • Rumo S.A.
  • Rua Emilio Bertolini, 100
  • Vila Oficinas
  • Curitiba
  • Paraná
  • 82920-030
  • Brazil

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RAIL3BOVESPA (Bolsa de Valores de Sao Paulo)YesNew Ordinary SharesBRBRLMar 2017
RUMO.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDMar 2017

Biography

Rumo S.A., through its subsidiaries, provides rail transportation services. It operates in three segments: Northern Operations, South Operations, and Container Operations. The company offers logistics services primarily for export commodities, including integrated transport solution, handling, storage, and shipment from the production centers to the southern and southeast ports. It owns and operates a fleet of 27,748 railcars, 70 road-railers, 1,000 vehicles, and 966 locomotives. The company transports agricultural commodities, including fertilizers, corn, wheat, soybean, bran, vegetable oil, and sugar; and fuel, construction, steel, forestry, consumption, petrochemical, and container products. It is also involved in the terminal and storage operations; railcars unload, inventory management, and shipment operations; and installation of railcar re-cooling centers in Guarapuava and Curitiba, as well as the provision of refrigerated express train services and railway-based logistics solutions to handle refrigerated cargo. The company was formerly known as ALL – América Latina Logística S.A. Rumo S.A. was founded in 1997 and is headquartered in Curitiba, Brazil. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/21 00:38
End of Day Share Price2019/08/23 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.