Returns On Capital At Raia Drogasil (BVMF:RADL3) Have Stalled
Oct 27
Brazilian (BOVESPA) Market Analysis & Valuation
UpdatedOct 31, 2023
DataAggregated Company Financials
Companies370
- 7D-1.1%
- 3M-9.1%
- 1Y-11.3%
- YTD2.0%
In the last week, the market has stayed flat, however the Materials sector stood out, gaining 3.8%. Unfortunately though, the market is down 9.4% over the past year. Earnings are forecast to grow by 18% annually.
Market Valuation and Performance
Has the Brazilian Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 31 Oct 2023 | R$4.1t | R$4.6t | R$490.8b | 10.2x | 8.5x | 0.9x |
| Thu, 28 Sep 2023 | R$4.3t | R$4.6t | R$507.0b | 10.6x | 8.4x | 0.9x |
| Sat, 26 Aug 2023 | R$4.4t | R$4.6t | R$506.2b | 11x | 8.7x | 1x |
| Mon, 24 Jul 2023 | R$4.5t | R$4.6t | R$555.0b | 11.9x | 8.2x | 1x |
| Wed, 21 Jun 2023 | R$4.5t | R$4.6t | R$556.1b | 11.8x | 8.1x | 1x |
| Fri, 19 May 2023 | R$4.2t | R$4.6t | R$565.3b | 10.3x | 7.3x | 0.9x |
| Sun, 16 Apr 2023 | R$4.1t | R$4.6t | R$597.1b | 10.1x | 6.8x | 0.9x |
| Tue, 14 Mar 2023 | R$4.0t | R$4.6t | R$617.6b | 9.6x | 6.5x | 0.9x |
| Thu, 09 Feb 2023 | R$4.2t | R$4.6t | R$627.4b | 9.8x | 6.7x | 0.9x |
| Sat, 07 Jan 2023 | R$4.2t | R$4.6t | R$630.1b | 9.4x | 6.6x | 0.9x |
| Mon, 05 Dec 2022 | R$4.4t | R$4.6t | R$629.8b | 9.4x | 6.9x | 1x |
| Wed, 02 Nov 2022 | R$4.7t | R$4.4t | R$641.1b | 9.8x | 7.3x | 1.1x |
| Fri, 30 Sep 2022 | R$4.3t | R$4.4t | R$636.4b | 9.2x | 6.8x | 1x |
| Sun, 28 Aug 2022 | R$4.5t | R$4.4t | R$639.8b | 9.6x | 7.1x | 1x |
| Tue, 26 Jul 2022 | R$4.2t | R$4.2t | R$683.0b | 8.1x | 6.1x | 1x |
| Thu, 23 Jun 2022 | R$4.1t | R$4.2t | R$683.8b | 8.3x | 6x | 1x |
| Sat, 21 May 2022 | R$4.5t | R$4.2t | R$678.1b | 8.9x | 6.6x | 1.1x |
| Mon, 18 Apr 2022 | R$4.9t | R$4.0t | R$626.9b | 10.1x | 7.8x | 1.2x |
| Wed, 16 Mar 2022 | R$4.7t | R$3.9t | R$617.1b | 9.5x | 7.6x | 1.2x |
| Fri, 11 Feb 2022 | R$4.8t | R$3.8t | R$611.7b | 9.7x | 7.9x | 1.3x |
| Sun, 09 Jan 2022 | R$4.5t | R$3.8t | R$615.2b | 9.7x | 7.2x | 1.2x |
| Tue, 07 Dec 2021 | R$4.7t | R$3.8t | R$617.2b | 10.4x | 7.5x | 1.2x |
| Thu, 04 Nov 2021 | R$4.8t | R$3.6t | R$586.6b | 11.8x | 8.2x | 1.3x |
| Sat, 02 Oct 2021 | R$5.1t | R$3.5t | R$535.7b | 12.5x | 9.4x | 1.4x |
| Mon, 30 Aug 2021 | R$5.4t | R$3.5t | R$529.5b | 13.4x | 10.2x | 1.5x |
| Tue, 06 Jul 2021 | R$5.6t | R$3.4t | R$526.0b | 13.5x | 10.7x | 1.7x |
| Fri, 09 Apr 2021 | R$4.9t | R$2.9t | R$355.3b | 14.3x | 13.9x | 1.7x |
| Thu, 31 Dec 2020 | R$4.9t | R$2.6t | R$216.0b | 16.4x | 22.7x | 1.9x |
Price to Earnings Ratio
30.3x
Current Market PE
- Investors are pessimistic on the Brazilian market, indicating that they anticipate earnings will not grow as fast as they have historically.
- The market is trading at a PE ratio of 8.5x which is lower than its 3-year average PE of 10.3x.
Past Earnings Growth
- The earnings for Brazilian listed companies have grown 57% per year over the last three years.
- Revenues for these companies have grown 24% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Sector Trends
Which sectors have driven the changes within the Brazilian Market?
| BR Market | -1.07% | |
| Materials | 4.57% | |
| Real Estate | -0.23% | |
| Telecom | -0.62% | |
| Energy | -0.86% | |
| Utilities | -0.97% | |
| Financials | -0.97% | |
| Tech | -1.96% | |
| Consumer Staples | -2.59% | |
| Consumer Discretionary | -2.63% | |
| Industrials | -4.36% | |
| Healthcare | -8.01% | |
Sector PE
- Investors favour the Healthcare sector the most for future growth, which is trading close to its 3-year average PE ratio of 53.2x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 39.2% which is higher than its past year's earnings decline of 6.4% per year.
- The Energy sector is the least preferred by investors for future growth, which is trading below its 3-year average of 6.9x.
Forecasted Growth
- Analysts are most optimistic on the Energy sector, expecting annual earnings growth of 42% over the next 5 years.
- This is better than its past earnings growth rate of 18% per year.
- In contrast, the Materials sector is expected to see its earnings decline by 2.6% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|---|
| VALE3 Vale | R$68.18 | 9.0% +R$21.6b | 1.6% | PE5.9x | Materials | |
| JBSS3 JBS | R$19.91 | 2.6% +R$1.1b | -20.2% | PE9.5x | Consumer Staples | |
| CMIN3 CSN Mineração | R$5.07 | 2.8% +R$767.9m | 42.8% | PE11.6x | Materials | |
| CSNA3 Companhia Siderúrgica Nacional | R$11.50 | 5.0% +R$729.4m | -6.4% | PS0.3x | Materials | |
| UGPA3 Ultrapar Participações | R$20.39 | 3.3% +R$719.0m | 52.1% | PE15x | Energy |
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