Gafisa SA (GFASY) AI Stock Analysis

• Market Cap: $19.57M
• Dividend Yield: 3.61%
• Average Volume (3M): 4.88K
• Price to Earnings (P/E): 20.6
• Beta (1Y): -0.16
• Revenue Growth: -19.20%
• EPS Growth: 86.99%
• Country: US
• Employees: 295
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Residential Construction
• EPS (TTM): 1.55
• Shares Outstanding: 67,287,810
• 10 Day Avg. Volume: 10,597
• 30 Day Avg. Volume: 4,880
• PEG Ratio: 0.43
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.82
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.50
• Price Target Upside: 72.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $0.50 ▲(72.41%Upside)

The most significant factor impacting Gafisa SA's stock score is its financial instability, driven by substantial losses and high debt levels. The technical analysis indicates bearish momentum, further contributing to a low score. Valuation concerns with a negative P/E ratio and low dividend yield also weigh on the overall assessment.

Gafisa SA Business Overview & Revenue Model

Company Description

Gafisa S.A. is a leading Brazilian real estate company, primarily engaged in the development and sale of residential properties. The company is headquartered in São Paulo, Brazil, and operates predominantly in the Brazilian market. Gafisa specializes in the construction of high-quality residential buildings, catering to a diverse range of customers from the middle to high-income segments. Founded in 1954, Gafisa has established a strong brand presence, known for its innovative designs, quality construction, and commitment to sustainability.

How the Company Makes Money

Gafisa S.A. generates revenue primarily through the development and sale of residential real estate properties. The company's key revenue streams include the sale of completed residential units, which encompass both high-rise apartment buildings and gated communities. Gafisa also engages in the acquisition, development, and sale of land for future real estate projects, which contributes to its earnings. The company often collaborates with other real estate developers and financial institutions to optimize its project financing and expand its market reach. Additionally, Gafisa may derive income from property management services and the rental of commercial spaces within its developments, although these are secondary to its core business of residential property sales.

Gafisa SA Financial Statement Overview

Summary

Gafisa SA's financial performance shows mixed results. The income statement indicates financial instability with negative margins, but improvements in cash flow management provide some optimism. The balance sheet reveals high leverage, posing financial risks despite stable equity. Overall, financial challenges persist, but there are signs of potential stabilization.

Income Statement

Gafisa SA's income statement reveals significant challenges, including negative gross and net profit margins in the most recent year, indicating cost inefficiencies and losses. Revenue has fluctuated, with a notable decline over the years except for a brief recovery in 2021. The negative EBIT and EBITDA margins further highlight operational struggles, though there was a positive EBITDA in 2024 due to cost management improvements. Overall, the income statement suggests financial instability, with persistent losses posing a risk.

Balance Sheet

The balance sheet shows a mixed picture. The debt-to-equity ratio is relatively high, indicating significant leverage which could pose financial risks in adverse conditions. However, the equity ratio has been stable, and there is a gradual increase in shareholder equity, providing some financial cushion. While the company maintains substantial assets, the growing debt levels demand careful management to ensure long-term sustainability.

Cash Flow

Gafisa SA's cash flow statement reflects improvements, particularly in operating cash flow, which turned positive in recent years. Free cash flow has also shown positive growth, indicating better cash management. However, the historical negative operating cash flows and high capital expenditures in previous years highlight past inefficiencies. The current positive trends in cash flow suggest potential for stabilization if sustained.

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

Gafisa SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.29 is below the 20-day moving average (MA) of 0.49, below the 50-day MA of 0.47, and below the 200-day MA of 0.49, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 34.68 is Neutral, neither overbought nor oversold. The STOCH value of 1.04 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
UHG	80 Outperform	$244.96M	6.27	97.48%	―	5.24%	-89.62%
HOV	79 Outperform	$671.24M	4.25	28.55%	―	7.93%	-3.59%
BZH	71 Outperform	$746.68M	7.96	7.97%	―	13.50%	-40.36%
LEGH	68 Neutral	$548.68M	9.87	11.90%	―	-1.62%	7.51%
LGIH	63 Neutral	$1.35B	7.42	9.36%	―	-4.37%	-3.17%
Sector *	63 Neutral	$17.18B	10.68	-8.50%	2.94%	1.62%	-25.72%
GFASY	45 Neutral	$19.57M	20.58	-2.09%	3.61%	-19.20%	86.99%