At the moment, the debt-to-equity of BRF S.A. (NYSE:BRFS) is high, standing at 182.54, a figure that is higher than the 52.08 average recorded by the industry. This means that the company is currently holding a debt level at 22.05 B. BRFS shares have a strong debt-to-equity ratio but their quick ratio which reads 0.70 is strong and might cause problems for them later in the future.
Even though there was a rise of +0.40% in revenue, the company failed to succeed in outperforming the industry average of 47.59%. For the most recent quarter, the net income has dropped by -580.48%. This weakness in their income has affected them and thus increased their earnings to $420.16 M. The 0.40% yoy growth of BRFS’s revenue has gone up that of the industry average by -1.79%. For the past 12 months, BRF S.A. revenue has gone up by 2.19%. The sustained growth in their revenue has helped boost their earnings per share.
They have recorded a 49.59% growing earnings per share earnings. They have recorded a 49.59% growing earnings per share earnings. Analysts expect decrease in earnings is also on the cards next quarter with an average estimate at -$0.13.
The 12-month return on equity has significantly fallen to -30.53 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Consumer Goods sector, the industry average is 14.91 while 60.82 is of the sector.
In addition to their unfavorable P/E ratio, BRF S.A. has maintained a gross margin of 16.02. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is -6.74 when compared to 7.71 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, BRF S.A. ROE is above 60.82 that of both the sector average.
The operating profit margin for BRF S.A. (BRFS) is -1.79%, a figure which is considered to be weak. It has gone 12.26 from the 7.78 over the past 5 years. In addition to this, their operating margin is -14.05 lower than the industry average.
The net profit margin which stood at 2.97 on average in the past 5 years has dropped to -9.22 in the last 12 months. Added to that, this ratio has missed the industry net margin that stands at 8.15.
Analysts meanwhile rate BRF S.A. (NYSE:BRFS) as a buy. Still some above discussed indicators of the $5.32B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the BRFS shares to either perform positively or negatively when compared to other stocks. The primary strengths of BRF S.A. can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.