Companhia Brasileira Stock Analysis, Valuation (NYSE:CBD)
Companhia Brasileira Stock Analysis
Take a look at Amigobulls Companhia Brasileira stock analysis video. This video puts forward our latest analysis highlighting the pros and cons for CBD stock.
Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.
Companhia Brasileira de Distribuicao-ADR Stock Rating 2.1/5
Amigobulls CBD stock analysis takes into account various financial ratios like relative valuation, Companhia Brasileira revenue, growth and return on equity based on latest quarter 2017 Q3 financial statements. We also check Companhia Brasileira dividend performance. Companhia Brasileira valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Based on a company's historical fundamentals we arrive at Companhia Brasileira stock rating which is indicative of the company's financial performance.
Should you buy CBD stock?
- The lower PS ratio 0.5 for CBD stock versus Retail-Supermarkets industry average of 0.8 is a positive for the company.
Should you sell CBD stock?
- Companhia Brasileira revenue saw a decline of -25.8% YoY in 2017 Q3.
- Revenue declined at a CAGR of -12.4% over the last 5 years.
- Companhia Brasileira had an unimpressive average operating margin of 2.3% during the Last Twelve Months (LTM).
- Companhia Brasileira's LTM Net margins were poor at 0.6%.
- Companhia Brasileira has a low ROIC (Return on Invested Capital) of 4.2%.
- The TTM ROE (Return On Equity) for Companhia Brasileira is not so attractive at 2.2%.
- The company has negative Free Cash Flows (FCF), with a negative FCF margin of -9%.
Amigobulls Companhia Brasileira stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. The fundamentals of a company are vital to identify long-term investment opportunities.
Companhia Brasileira revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.