Discounted Cash Flow Calculation for BOVESPA:STBP3 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
Santos Brasil Participações
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
BOVESPA:STBP3 DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
Santos Brasil Participações
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Santos Brasil Participações's
is considered below, and whether this is a fair price.
Price based on past earnings
Santos Brasil Participações's earnings available for a low price, and how does
this compare to other companies in the same industry?
Santos Brasil Participações's earnings are expected to grow significantly at over 20% yearly.
Santos Brasil Participações's revenue is expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Santos Brasil Participações's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Santos Brasil Participações
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Santos Brasil Participações's finances.
The net worth of a company is the difference between its assets and liabilities.
Santos Brasil Participações is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Santos Brasil Participações's long term commitments exceed its cash and other short term assets.
This treemap shows a more detailed breakdown of
Santos Brasil Participações's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 1.4x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Antônio Carlos Duarte Sepúlveda has been the Chief Executive Officer of Santos-Brasil Participacoes S.A since March 2010 and is its Interim Operations Officer since 2019 and is its Member of Executive Board and served as its Chief Operating Officer and Member of Executive Board. Mr. Duarte Sepúlveda has been the Chief Executive Officer of Numeral 80 Participações S.A. since March 2010 and served as its Chief Operating Officer and Member of Executive Board. Mr. Duarte Sepúlveda serves as the Chief Executive Officer of Santos-Brasil S.A and serves as its Member of Executive Board. He served as the Chief Operating Officer at Santos-Brasil S.A since 2002. He served as the Chief Operations Officer of Numeral 80 Participações S.A. He has served in the Port Industry since 1992 and in Santos-Brasil SA since 2000. He serves as Member of Executive Board of Santos Brasil Participações SA. Mr. Duarte Sepúlveda holds a Bachelors Degree in Civil Engineering from the Universidade Federal da Bahia and an MBA from the Saint Joseph’s University of Philadelphia.
Insufficient data for Antônio Carlos to compare compensation growth.
Insufficient data for Antônio Carlos to establish whether their remuneration is reasonable compared to companies of similar size in .
Management Team Tenure
Average tenure of the
Santos Brasil Participações
management team in years:
The tenure for the Santos Brasil Participações management team is about average.
Antônio Carlos Sepúlveda
CEO, Interim Operations Officer & Member of Executive Board
Economic-Financial Director of Finances
Ricardo dos Buteri
Chief Commercial Officer & Member of Executive Board
Board of Directors
President of the Board
Maria Amalia de Melo Coutrim
Vice President of the Board
President of Fiscal Council
Eduardo de Azevedo
Jose Bringel Vidal
Member of Fiscal Council
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Santos Brasil Participações S.A., through its subsidiaries, provides port container handling and logistics services in Brazil. The company operates container terminals, including Tecon Santos located in the State of São Paulo; Tecon Vila do Conde located in Barcarena, State of Pará; and Tecon Imbituba situated in the Port of Imbituba, State of Santa Catarina. It also operates TCG Imbituba general cargo terminal in the State of Santa Catarina; and a vehicle handling terminal in the Port of Santos, State of São Paulo. In addition, the company offers logistic, warehousing, transportation, and distribution services to port terminals and value added services for its customers, as well as special cargo and project solutions. Further, it provides integrated logistics and customized logistics solution development services and related activities. The company serves shipping companies, owners of vessels and containers, and import and export clients in various segments, such as automotive, auto parts, chemicals, petrochemicals, pharmaceuticals, food, electronics, consumer goods, and agribusiness. Santos Brasil Participações S.A. was founded in 1997 and is headquartered in São Paulo, Brazil.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.