Positivo Tecnologia SA

Positivo Tecnologia SA has a market price of 4.14 BRL, with a market capitalization of 576.33 million BRL. The company's price-to-earnings ratio is 9.01, and its price-to-book ratio is 0.35, indicating a relatively low valuation compared to its book value. The company's liquidity position is characterized by a current ratio of 1.96, suggesting it has sufficient short-term assets to cover its short-term liabilities. However, the company's net cash position is negative after subtracting total debt, which may pose liquidity risks.

In terms of profitability, Positivo Tecnologia SA has a return on equity of 3.88% and a return on assets of 1.44%, which are below the industry median for Computer Hardware companies. The company's gross profit margin is 23.94%, and its operating margin is 10.30%, indicating moderate profitability. The company's debt-to-equity ratio is 0.85, suggesting a balanced capital structure with a moderate level of leverage.

Positivo Tecnologia SA's revenue is primarily concentrated in the Brazilian market, with a significant portion derived from the sale of computers and peripherals. The company's geographic exposure is limited, which may increase its vulnerability to regional economic fluctuations. The company's revenue for the latest period is 994.67 million BRL, and its operating cash flow is 83.25 million BRL, indicating a positive cash flow from operations.

The company's growth trajectory is reflected in its capital expenditure of -2.795 million BRL, suggesting a reduction in investment in new projects or assets. The company's free cash flow is 74.935 million BRL, which can be used for debt repayment, dividends, or further investments. Analysts have provided a mean price target of 6.07 BRL, with a median price target of 6.00 BRL, indicating a positive outlook on the company's stock.

The company faces several risk factors, including liquidity risks due to its negative net cash position after subtracting total debt. The company's dilution potential is low, with no significant dilution expected in the near term. The company's recent financial filings and transcripts do not indicate any major events that would significantly impact its operations or financial position.

Analysts project 61.8% upside to a mean price target of BRL 6.07, reflecting strong buy recommendations.

Operating and net margins exceed the 75th percentile of the computer hardware cohort, indicating superior profitability.

Cash conversion of 1.3 outperforms the cohort median of 1.0, demonstrating efficient working capital management.

Return on equity of 3.9% surpasses the cohort median of 3.0%, showing better capital efficiency than peers.

Capex intensity is lower than the cohort median, suggesting less capital expenditure required to sustain operations.

The company carries a high credit risk flag, indicating significant concerns regarding its debt servicing ability.

Debt-to-equity ratio of 0.85 ranks in the bottom quartile, reflecting excessive leverage compared to peers.

Revenue contracted 9.0% year-over-year to BRL 3.35 billion, highlighting weakening top-line growth.

Revenue BRL 991.6M, −5,2% YoY; Operating income +11,1% YoY.

• ▍Revenue BRL 991.6M, −5,2% YoY
• ▍Operating income +11,1% YoY
• ▍Net income +74,0% YoY
• ▍Free cash flow +18,8% YoY
• ▍Net margin 2.1%

Revenue BRL 805.6M, −1,7% YoY; Operating income −7,8% YoY.

• ▍Revenue BRL 805.6M, −1,7% YoY
• ▍Operating income −7,8% YoY
• ▍Net income +68,4% YoY
• ▍Free cash flow +184,6% YoY
• ▍Net margin 0.1%

Revenue BRL 842.2M, +3,6% YoY; Operating income −22,3% YoY.

• ▍Revenue BRL 842.2M, +3,6% YoY
• ▍Operating income −22,3% YoY
• ▍Net income −101,6% YoY
• ▍Free cash flow +39,0% YoY
• ▍Net margin -0.0%

Revenue BRL 715.4M, −28,1% YoY; Operating income −67,0% YoY.

• ▍Revenue BRL 715.4M, −28,1% YoY
• ▍Operating income −67,0% YoY
• ▍Net income −121,1% YoY
• ▍Free cash flow −96,2% YoY
• ▍Net margin -1.9%

Revenue BRL 1.05B; Operating income BRL 82.5M.

• ▍Revenue BRL 1.05B
• ▍Operating income BRL 82.5M
• ▍Net margin 1.2%

Revenue BRL 819.6M; Operating income BRL 53.5M.

• ▍Revenue BRL 819.6M
• ▍Operating income BRL 53.5M
• ▍Net margin 0.1%

Revenue BRL 813.1M; Operating income BRL 71.0M.

• ▍Revenue BRL 813.1M
• ▍Operating income BRL 71.0M
• ▍Net margin 0.4%

Revenue BRL 994.7M; Operating income BRL 102.5M.

• ▍Revenue BRL 994.7M
• ▍Operating income BRL 102.5M
• ▍Net margin 6.4%

Revenue BRL 3.35B, −9,0% YoY; Operating income −25,7% YoY.

• ▍Revenue BRL 3.35B, −9,0% YoY
• ▍Operating income −25,7% YoY
• ▍Net income −89,2% YoY
• ▍Free cash flow −47,5% YoY
• ▍Net margin 0.3%

Revenue BRL 3.69B, −6,1% YoY; Operating income −39,1% YoY.

• ▍Revenue BRL 3.69B, −6,1% YoY
• ▍Operating income −39,1% YoY
• ▍Net income −67,4% YoY
• ▍Free cash flow −66,4% YoY
• ▍Net margin 2.2%

Revenue BRL 3.93B, −21,4% YoY; Operating income −18,6% YoY.

• ▍Revenue BRL 3.93B, −21,4% YoY
• ▍Operating income −18,6% YoY
• ▍Net income −18,6% YoY
• ▍Free cash flow −32,5% YoY
• ▍Net margin 6.3%

Revenue BRL 4.99B, +48,4% YoY; Operating income +106,2% YoY.

• ▍Revenue BRL 4.99B, +48,4% YoY
• ▍Operating income +106,2% YoY
• ▍Net income +51,4% YoY
• ▍Free cash flow +58,2% YoY
• ▍Net margin 6.1%