Mitre Realty Empreendimentos e Participacoes SA

Mitre's capital structure shows a debt-to-equity ratio of 0.61, below the industry median of 0.85, indicating a relatively conservative leverage profile. The company maintains a current ratio of 2.61, suggesting strong short-term liquidity, though net cash is negative after subtracting total debt, signaling potential refinancing needs. Return on equity of 0.11% and return on assets of 0.05% lag significantly behind the industry median of 3.2% and 1.8% respectively, highlighting underperformance in capital efficiency.

The company's operating margin of 2.25% (calculated from operating income of BRL 5.54M on revenue of BRL 245.57M) trails the 4.5% median for homebuilders, while net margin of 0.43% is below the 2.1% industry benchmark. Gross margin of 21.67% (BRL 53.22M on revenue) aligns with the 22% median, but operating leverage appears constrained by low volume and high fixed costs.

Geographic exposure is concentrated in Brazil, with 100% of revenue derived domestically. Segment data is not disclosed, but the company operates as a single business unit focused on residential real estate development. This concentration exposes the company to Brazil-specific macroeconomic risks including currency volatility and regulatory changes.

Outlook data shows revenue growth of 8.2% year-over-year to BRL 245.57M, below the 15% median growth for homebuilders. Analysts project 5.1% revenue growth for FY2024, with operating income expected to remain flat. The company's diluted EPS of BRL 0.01 is below the BRL 0.15 median, with no near-term dilution risk identified.

Recent filings show no material changes in business operations or capital structure. The company maintains a price target range of BRL 4.60-4.80 with a mean of BRL 4.70, implying 12.3% upside from the current price of BRL 4.19. No recent earnings transcripts or investor calls were available for analysis.

Revenue grew at a 16.4% CAGR over four years, demonstrating strong top-line expansion momentum for the company.

Analysts project 39.1% upside to a mean price target of BRL 4.70, indicating significant undervaluation relative to current prices.

Net income CAGR of 21.9% over four years outpaces revenue growth, highlighting improving profitability trends.

Cash conversion ratio of 48.4% ranks best-in-class among peers, suggesting superior operational efficiency in generating cash.

Free cash flow turned positive in FY-1, reaching BRL 50.89 million, marking a shift from previous negative cash flow periods.

Operating margin of 2.25% falls in the bottom quartile of the homebuilding cohort, indicating weak pricing power or high costs.

Return on equity of 0.11% is in the bottom quartile, signaling extremely poor capital efficiency compared to industry peers.

The company faces high credit risk, which could impair its ability to secure financing or service existing debt obligations.

Long-term debt surged to BRL 682.9 million in FY0, reflecting a significant increase in leverage over the four-year period.

Revenue BRL 351.9M; Operating income BRL 32.8M.

• ▍Revenue BRL 351.9M
• ▍Operating income BRL 32.8M
• ▍Net margin 5.3%

Revenue BRL 292.3M; Operating income BRL 23.8M.

• ▍Revenue BRL 292.3M
• ▍Operating income BRL 23.8M
• ▍Net margin 5.8%

Revenue BRL 289.6M; Operating income BRL 23.5M.

• ▍Revenue BRL 289.6M
• ▍Operating income BRL 23.5M
• ▍Net margin 4.3%

Revenue BRL 245.6M; Operating income BRL 5.5M.

• ▍Revenue BRL 245.6M
• ▍Operating income BRL 5.5M
• ▍Net margin 0.4%

Revenue BRL 1.05B, −10,6% YoY; Operating income +5,2% YoY.

• ▍Revenue BRL 1.05B, −10,6% YoY
• ▍Operating income +5,2% YoY
• ▍Net income +9,3% YoY
• ▍Free cash flow −81,2% YoY
• ▍Net margin 5.1%

Revenue BRL 1.18B, +27,3% YoY; Operating income −17,8% YoY.

• ▍Revenue BRL 1.18B, +27,3% YoY
• ▍Operating income −17,8% YoY
• ▍Net income −45,6% YoY
• ▍Free cash flow +597,9% YoY
• ▍Net margin 4.2%

Revenue BRL 926.4M, +22,1% YoY; Operating income +111,4% YoY.

• ▍Revenue BRL 926.4M, +22,1% YoY
• ▍Operating income +111,4% YoY
• ▍Net income +159,5% YoY
• ▍Free cash flow +143,9% YoY
• ▍Net margin 9.8%

Revenue BRL 758.6M, +32,2% YoY; Operating income +21,8% YoY.

• ▍Revenue BRL 758.6M, +32,2% YoY
• ▍Operating income +21,8% YoY
• ▍Net income +43,2% YoY
• ▍Free cash flow +47,0% YoY
• ▍Net margin 4.6%

Revenue BRL 574.0M; Operating income BRL 40.5M.

• ▍Revenue BRL 574.0M
• ▍Operating income BRL 40.5M
• ▍Net margin 4.2%