Fact based stock research
Porto Seguro (BOVESPA:PSSA3)

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Porto Seguro stock research in summary

portoseguro.com.br

ANALYSIS: With an Obermatt Combined Rank of 85 (better than 85% compared with investment alternatives), Porto Seguro (Multi-line Insurance, Brazil) shares have much better financial characteristics than comparable stocks. Shares of Porto Seguro are a good value (attractively priced) with a consolidated Value Rank of 91 (better than 91% of alternatives), show above-average growth (Growth Rank of 83) but are riskily financed (Safety Rank of 44), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 85, is a strong buy recommendation based on Porto Seguro's financial characteristics. As the company Porto Seguro's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 91) and above-average growth (Obermatt Growth Rank of 83), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 44) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	91
Growth Rank	83
Safety Rank	44
Combined Rank	85

Country	Brazil
Industry	Multi-line Insurance
Index
Size class	X-Large

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Porto Seguro

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	29	97	94	91
GROWTH
GROWTH	26	7	97	83
SAFETY
SAFETY	91	44	44	44
SENTIMENT
SENTIMENT	n/a	22	88	^new
360° VIEW
360° VIEW	n/a	41	94	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Porto Seguro is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	29	97	94	91
GROWTH
GROWTH	26	7	97	83
SAFETY
SAFETY	91	44	44	44
COMBINED
COMBINED	42	85	85	85

Last update of combined financial performance: 6-Oct-2022. Stock analysis on combined financial performance: The higher the rank of Porto Seguro the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 91 (better than 91% compared with alternatives) for 2022, Porto Seguro shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Porto Seguro. Price-to-Sales is 91 which means that the stock price compared with what market professionals expect for future sales is lower than for 91% of comparable companies, indicating a good value for Porto Seguro's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 77% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 67. Compared with other companies in the same industry, dividend yields of Porto Seguro are expected to be higher than for 65% of all competitors (a Dividend Yield rank of 65). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 91, is a buy recommendation based on Porto Seguro's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Porto Seguro based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	69	100	93	91
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	58	86	84	77
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	29	81	63	67
DIVIDEND YIELD
DIVIDEND YIELD	1	72	76	65
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	29	97	94	91

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Porto Seguro; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 83 (better than 83% compared with alternatives) for 2022, Porto Seguro shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Porto Seguro. Profit Growth has a rank of 55 which means that currently professionals expect the company to grow its profits more than 55% of its competitors. The same is valid for capital growth and stock returns. Capital Growth has a rank of 81, and Stock Returns has a rank of 93 which means that the stock returns have recently been above 93% of alternative investments. Only revenue growth is low with a Sales Growth has a rank of 42 (58% of its competitors are better). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 83, is a buy recommendation for growth and momentum investors. The many positive growth indicators indicate a positive growth momentum with only low revenue growth. That can also be attributed to divestments or the sale of unprofitable businesses. If that is the reason, overall growth is well on track to making this stock attractive for growth investors. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	54	49	45	42
PROFIT GROWTH
PROFIT GROWTH	n/a	8	96	55
CAPITAL GROWTH
CAPITAL GROWTH	n/a	15	97	81
STOCK RETURNS
STOCK RETURNS	33	19	77	93
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	26	7	97	83

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Porto Seguro.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 44 (better than 44% compared with alternatives), the company Porto Seguro has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of Porto Seguro is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Porto Seguro. Liquidity is at 1, meaning that the company generates less profit to service its debt than 99% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 27, meaning the company has an above-average debt-to-equity ratio. It has more debt than 73% of its competitors. Finally, Refinancing is at a rank of 48 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 52% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 44 (worse than 56% compared with alternatives), Porto Seguro has a financing structure that is riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing. Investors should look at Obermatt’s Value, Growth, and Sentiment Ranks to confirm a very positive outlook or be careful with investing in stocks of Porto Seguro because it may suffer significantly in case of future difficulties. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	90	26	26	27
REFINANCING
REFINANCING	60	48	48	48
LIQUIDITY
LIQUIDITY	91	67	73	1
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	91	44	44	44

Last update of Safety Rank: 6-Oct-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Porto Seguro and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	34	54	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	18	69	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	82	79	^new
MARKET PULSE
MARKET PULSE	n/a	21	59	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	22	88	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Porto Seguro.
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