Fact based stock research
TOTVS (BOVESPA:TOTS3)

BRTOTSACNOR8

How to read the free ranks

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.

TOTVS stock research in summary

totvs.com

ANALYSIS: With an Obermatt Combined Rank of 53 (better than 53% compared with investment alternatives), TOTVS (Systems Software, Brazil) shares have above-average financial characteristics compared with similar stocks. Shares of TOTVS are a good value (attractively priced) with a consolidated Value Rank of 61 (better than 61% of alternatives), show above-average growth (Growth Rank of 79) but are riskily financed (Safety Rank of 22), which means above-average debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 53, is a buy recommendation based on TOTVS's financial characteristics. As the company TOTVS's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 61) and above-average growth (Obermatt Growth Rank of 79), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 22) 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	61
Growth Rank	79
Safety Rank	22
Combined Rank	53

Country	Brazil
Industry	Systems Software
Index	BOVESPA
Size class	Medium

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

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

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

Research History: TOTVS

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	60	62	38	61
GROWTH
GROWTH	83	51	61	79
SAFETY
SAFETY	51	46	15	22
SENTIMENT
SENTIMENT	n/a	94	94	^new
360° VIEW
360° VIEW	n/a	77	51	^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 TOTVS is in the corresponding investment strategy.
Upgrade to a Premium Account to access the latest ranks.

Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	60	62	38	61
GROWTH
GROWTH	83	51	61	79
SAFETY
SAFETY	51	46	15	22
COMBINED
COMBINED	74	46	18	53

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of TOTVS the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 61 (better than 61% compared with alternatives), TOTVS shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for TOTVS. Price-to-Sales is 57 which means that the stock price compared with what market professionals expect for future sales is lower than for 57% of comparable companies, indicating a good value for TOTVS's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 54% 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 51. Compared with other companies in the same industry, dividend yields of TOTVS are expected to be higher than for 56% of all competitors (a Dividend Yield rank of 56). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 61, is a buy recommendation based on TOTVS'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 TOTVS 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)	51	53	43	57
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	56	54	41	54
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	43	64	48	51
DIVIDEND YIELD
DIVIDEND YIELD	67	54	54	56
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	60	62	38	61

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

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 79 (better than 79% compared with alternatives) for 2024, TOTVS 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 half of the indicators below and half above average for TOTVS. Sales Growth has a rank of 79 which means that currently, professionals expect the company to grow more than 79% of its competitors. Capital Growth is also above 36% of competitors with a rank of 89. But Profit Growth only has a rank of 36, which means that currently professionals expect the company to grow its profits less than 64% of its competitors. And Stock Returns have also been below average with a rank of only 31. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 79, is a buy recommendation for growth and momentum investors. Profits are sometimes low if the company invests in the future. The positive revenue and capital investment outlook confirms such an interpretation. Both revenues and capital are solid growth indicators, and lower profits in such a case would be encouraging. But the investors see it differently by punishing the share price. Sometimes, Mister Market is not very reliable, because it is not uncommon for it to be volatile. Investors should look out for signs of growth expenditure that could justify low profit growth, and they may also find reasons why recent stock price developments don't confirm the growth outlook of operations. While operating growth indicators are not perfect, they are more reliable indicators for future performance than stock prices that can repeatedly surprise 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, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	58	57	73	79
PROFIT GROWTH
PROFIT GROWTH	n/a	42	65	36
CAPITAL GROWTH
CAPITAL GROWTH	n/a	68	15	89
STOCK RETURNS
STOCK RETURNS	71	33	55	31
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	83	51	61	79

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

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 22 (better than 22% compared with alternatives), the company TOTVS has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of TOTVS 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 just one indicator above average for TOTVS and the other two below average. Refinancing is at 65, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 65% of its competitors. But Leverage is high with a rank of 32, meaning the company has an above-average debt-to-equity ratio. It has more debt than 68% of its competitors. Liquidity is also on the riskier side with a rank of 19, meaning the company generates less profit to service its debt than 81% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 22 (worse than 78% compared with alternatives), TOTVS has a financing structure that is significantly riskier than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for TOTVS are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with TOTVS and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	37	56	34	32
REFINANCING
REFINANCING	29	60	52	65
LIQUIDITY
LIQUIDITY	89	45	18	19
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	51	46	15	22

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of TOTVS 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	60	84	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	87	83	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	92	63	^new
MARKET PULSE
MARKET PULSE	n/a	47	69	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	94	94	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for TOTVS.
Upgrade to a Premium Account to access the latest ranks.