Arezzo Industria e Comercio SA
BOVESPA:ARZZ3
Intrinsic Value
Arezzo Industria e Comercio SA engages in the manufacture, design, development, sale, and distribution of women's footwear, handbags, clothing, and accessories. [ Read More ]
The intrinsic value of one
ARZZ3
stock under the Base Case scenario is
91.64
BRL.
Compared to the current market price of 46.83 BRL,
Arezzo Industria e Comercio SA
is
Undervalued by 49%.
Arezzo Industria e Comercio SA's market capitalization is 5.2B BRL.
ARZZ3 stock price is 46.83 BRL.
ARZZ3 stock price (46.83 BRL) is 49% less than its Intrinsic Value (91.64 BRL).
ARZZ3 stock price (46.83 BRL) is 63% less than its Relative Value (125.25 BRL). Open Relative Valuation
ARZZ3 has upside potential of 78% compared to the average analyst price target.
Open Wall St Estimates
ARZZ3 has positive Net Income for the last twelve months.
ARZZ3 has positive Operating Income for the last twelve months.
ARZZ3's ROE (Return on Equity) for the past 12 months is positive and is equal to 14%.
ARZZ3's Revenue has grown by 14% over the past 12 months.
ARZZ3's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 16%.
ARZZ3 has positive Free Cash Flow for the last twelve months.
ARZZ3's short-term assets (3B BRL) exceed its short-term liabilties (2B BRL).
ARZZ3 has positive three-year average ROIC (Return on Invested Capital): 14%. The company is efficient at using invested capital to generate operating income.
ARZZ3's ROIC (Return on Invested Capital) has increased in the last 3 years from 7% to 16%.
ARZZ3's ROE (Return on Equity) has increased in the last 3 years from 5% to 14%.
ARZZ3's Revenue is forecast to grow at a rate of 14% per year over the next 3 years.
ARZZ3's Altman Z-Score is equal to 2.79.
ARZZ3 has positive three-year average ROE (Return on Equity): 17%. The company is efficient at transforming stockholders' equity into net income.
ARZZ3 has negative Net Debt. This means that the company has more cash and short-term investments (750m BRL) than debt (606m BRL).
ARZZ3's long-term assets (6B BRL) exceed its long-term liabilties (3B BRL).
ARZZ3 has positive Gross Profit for the last twelve months.
ARZZ3's Revenue has been growing by an exceptional 45% per year for the last 3 years.
ARZZ3's D/E (Debt to Equity) is very low and is equal to 0.21.
ARZZ3 earns more than enough operating income (601m BRL) to safely cover interest payments on its debt (28m BRL).
Valuation Backtest
Arezzo Industria e Comercio SA
Run backtest to discover the historical profit from buying and selling
ARZZ3
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Arezzo Industria e Comercio SA
Balance Sheet Decomposition
Arezzo Industria e Comercio SA
| Current Assets | 2.9B |
| Cash & Short-Term Investments | 749.7m |
| Receivables | 1.3B |
| Other Current Assets | 828.6m |
| Non-Current Assets | 3.1B |
| Long-Term Investments | 4.2m |
| PP&E | 890.9m |
| Intangibles | 1.6B |
| Other Non-Current Assets | 603.8m |
| Current Liabilities | 2.3B |
| Accounts Payable | 834.5m |
| Accrued Liabilities | 204.4m |
| Other Current Liabilities | 1.3B |
| Non-Current Liabilities | 774.1m |
| Long-Term Debt | 606.4m |
| Other Non-Current Liabilities | 167.6m |
Earnings Waterfall
Arezzo Industria e Comercio SA
|
Revenue
|
4.8B
BRL
|
|
Cost of Revenue
|
-2.2B
BRL
|
|
Gross Profit
|
2.6B
BRL
|
|
Operating Expenses
|
-2B
BRL
|
|
Operating Income
|
600.8m
BRL
|
|
Other Expenses
|
-201.4m
BRL
|
|
Net Income
|
399.4m
BRL
|
Free Cash Flow Analysis
Arezzo Industria e Comercio SA
ARZZ3 Profitability Score
Profitability Due Diligence
Arezzo Industria e Comercio SA's profitability score is 63/100. The higher the profitability score, the more profitable the company is.
Score
Arezzo Industria e Comercio SA's profitability score is 63/100. The higher the profitability score, the more profitable the company is.
ARZZ3 Solvency Score
Solvency Due Diligence
Arezzo Industria e Comercio SA's solvency score is 73/100. The higher the solvency score, the more solvent the company is.
Score
Arezzo Industria e Comercio SA's solvency score is 73/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
ARZZ3 Price Targets Summary
Arezzo Industria e Comercio SA
According to Wall Street analysts, the average 1-year price target for
ARZZ3
is 83.34 BRL
with a low forecast of 67.42 BRL and a high forecast of 113.4 BRL.
Shareholder Return
ARZZ3 Price
Arezzo Industria e Comercio SA
| Average Annual Return | 13.7% |
| Standard Deviation of Annual Returns | 14.15% |
| Max Drawdown | -55% |
| Market Capitalization | 5.2B BRL |
| Shares Outstanding | 110 834 144 |
| Percentage of Shares Shorted |
N/A
|
Company Profile
Arezzo Industria e Comercio SA
Country
Industry
Market Cap
Dividend Yield
Description
Arezzo Industria e Comercio SA engages in the manufacture, design, development, sale, and distribution of women's footwear, handbags, clothing, and accessories. The company is headquartered in Belo Horizonte, Minas Gerais and currently employs 7,450 full-time employees. The company went IPO on 2011-01-31. The Company’s brand portfolio includes Arezzo, a footwear retailer; Blizza, a brand focused on flipflops, sandals, sliders, and purses; Bambini, the Company’s children's line, with bright colors and comfortable shoes, as well as MyShoes, whose portfolio includes footwear, handbags and fashion content. Each one of Arezzo Industria e Comercio SA’s brands has a specific public and specific products, operating through a variety of distribution channels: Company-owned stores, franchises, multi-brand stores, e-commerce, and some also export. The firm has several subsidiaries, including Arzz International Inc, Tiferet Comercio de Roupas Ltda and Guarana Brasil Difusao de Moda Ltda.
Contact
IPO
Employees
Officers
The intrinsic value of one
ARZZ3
stock under the Base Case scenario is
91.64
BRL.
Compared to the current market price of 46.83 BRL,
Arezzo Industria e Comercio SA
is
Undervalued by 49%.
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