Gafisa SA (GFASY) AI Stock Analysis

• Market Cap: $10.06M
• Dividend Yield: N/A
• Average Volume (3M): 523.00
• Price to Earnings (P/E): <0.1
• Beta (1Y): 0.04
• Revenue Growth: -12.98%
• EPS Growth: 144.89%
• Country: US
• Employees: 295
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): -0.21
• Shares Outstanding: 111,622,170
• 10 Day Avg. Volume: 1,019
• 30 Day Avg. Volume: 523
• PEG Ratio: 0.02
• Price to Book (P/B): 0.03
• Price to Sales (P/S): 0.06
• P/FCF Ratio: 0.38
• Enterprise Value/Market Cap: 162.08
• Enterprise Value/Revenue: 1.87
• Enterprise Value/Gross Profit: -24.76
• Enterprise Value/Ebitda: 45.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: $0.09 ▲(1.11% Upside)

Gafisa SA's overall stock score reflects significant financial and technical challenges. The company's declining revenues, negative margins, and liquidity issues are major concerns. Technical analysis indicates bearish momentum, with the stock trading well below key moving averages. Although the P/E ratio is low, it likely reflects market skepticism about the company's future rather than an opportunity. Improvement in financial performance and technical indicators is necessary for a more positive outlook.

Positive Factors

Revenue Streams

The diversified revenue streams from residential sales and partnerships with financial institutions provide a stable income base, supporting long-term growth.

Market Position

As a leading player in the Brazilian real estate market, Gafisa benefits from brand recognition and market expertise, enhancing its competitive position.

Debt Management

A moderate debt-to-equity ratio suggests that Gafisa has a balanced approach to leverage, providing financial stability and flexibility for growth.

Negative Factors

Revenue Decline

Continued revenue decline indicates challenges in market demand or competitive pressures, potentially impacting long-term profitability and growth.

Profitability Issues

Negative profit margins reflect operational inefficiencies and cost management issues, which could hinder sustainable profitability if not addressed.

Cash Flow Challenges

Negative cash flows indicate liquidity challenges, limiting Gafisa's ability to invest in growth opportunities and manage financial obligations effectively.

Gafisa SA Business Overview & Revenue Model

Company Description

Gafisa S.A. operates as a homebuilder under the Gafisa brand name in Brazil. The company engages in the development, sale, and brokerage of residential units, such as luxury buildings with swimming pools, gyms, visitor parking, and other amenities for higher and middle-income customers; entry-level buildings and house units for middle-low-income customers; and commercial units. It also develops land subdivisions for sale; and provides construction, technical, and real estate management services to third parties. Gafisa S.A. was founded in 1954 and is headquartered in São Paulo, Brazil.

How the Company Makes Money

Gafisa generates revenue primarily through the sale of residential units in its development projects. The company constructs properties and markets them to consumers, realizing income from the sales of these units. In addition to direct sales, Gafisa also earns revenue through partnerships with financial institutions, providing financing options for homebuyers, which can include mortgage arrangements. Furthermore, the company may engage in land development and urbanization projects, creating additional revenue streams. Key factors contributing to Gafisa's earnings include market demand for housing in Brazil, economic conditions influencing real estate investments, and strategic collaborations with other firms and government entities to enhance its project portfolio.

Gafisa SA Financial Statement Overview

Summary

Gafisa SA faces significant financial challenges across its income statement, balance sheet, and cash flow statement. The company is experiencing declining revenues and profitability, with negative margins and a negative return on equity. While the debt-to-equity ratio is moderate, cash flow issues persist, highlighting liquidity concerns. Overall, Gafisa SA needs to address its operational inefficiencies and improve cash management to stabilize its financial position.

Income Statement

Gafisa SA's income statement reveals significant challenges. The company has experienced declining revenue, with a negative revenue growth rate of -10.3% TTM. Margins are under pressure, with a negative gross profit margin of -8.2% and a net profit margin of -3.8% TTM. The EBIT margin is also negative, indicating operational inefficiencies. Despite these challenges, the EBITDA margin is slightly positive, suggesting some capacity to cover operating expenses. Overall, the income statement reflects a struggling financial performance with declining revenues and profitability.

Balance Sheet

The balance sheet of Gafisa SA shows a moderate financial position. The debt-to-equity ratio stands at 0.81 TTM, indicating a manageable level of leverage compared to equity. However, the return on equity is negative at -3.1% TTM, reflecting challenges in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets. Overall, the balance sheet suggests a balanced but strained financial structure with room for improvement in profitability.

Cash Flow

Gafisa SA's cash flow statement highlights significant issues. The company has a negative operating cash flow and free cash flow TTM, indicating cash outflows from operations. The free cash flow growth rate is notably high at 807.9% TTM, but this is due to a low base effect rather than improved cash generation. The operating cash flow to net income ratio is very low, suggesting difficulties in converting earnings into cash. Overall, the cash flow statement reflects liquidity challenges and a need for better cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	869.56M	1.01B	1.10B	1.14B	818.31M	884.04M
Gross Profit	-65.83M	-54.33M	-46.45M	121.40M	208.63M	181.22M
EBITDA	35.94M	104.31M	7.87M	-84.33M	39.12M	4.46M
Net Income	-62.41M	-40.58M	-195.31M	-83.17M	90.19M	-77.00M
Balance Sheet
Total Assets	4.98B	5.30B	5.13B	5.53B	4.72B	3.75B
Cash, Cash Equivalents and Short-Term Investments	42.09M	343.53M	78.30M	460.48M	452.84M	446.57M
Total Debt	1.56B	1.89B	1.83B	1.99B	1.57B	934.80M
Total Liabilities	2.99B	3.35B	3.42B	3.76B	2.91B	2.19B
Stockholders Equity	1.99B	1.95B	1.71B	1.77B	1.82B	1.56B
Cash Flow
Free Cash Flow	-118.93M	148.68M	117.68M	-219.94M	-321.66M	-469.64M
Operating Cash Flow	-98.36M	160.71M	132.60M	-90.61M	-279.92M	-452.89M
Investing Cash Flow	-90.79M	-108.44M	225.04M	10.56M	-284.08M	-237.93M
Financing Cash Flow	204.35M	-55.64M	-275.93M	67.63M	570.38M	693.78M

Gafisa SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GFASY, the sentiment is Negative. The current price of 0.09 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.11, and below the 200-day MA of 0.33, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 41.10 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GFASY.

Gafisa SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEGH	72 Outperform	$473.79M	10.01	9.62%	―	10.25%	-10.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HOV	60 Neutral	$611.08M	13.14	7.76%	―	-0.84%	-76.30%
BZH	56 Neutral	$623.77M	13.27	3.67%	―	1.77%	-66.27%
GFASY	45 Neutral	$10.06M	0.07	-1.94%	―	-12.98%	144.89%
UHG	44 Neutral	$86.46M	-4.36	-51.69%	―	-6.20%	24.90%