Gafisa SA (GFASY) AI Stock Analysis

• Market Cap: $12.10M
• Dividend Yield: N/A
• Average Volume (3M): 523.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• 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: 24.92
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: -3.79
• Enterprise Value/Ebitda: 3.95
• 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: 37 Underperform
• Price Target: $0.00 ▼(-100.00% Downside)

Gafisa SA's overall stock score is heavily impacted by its poor financial performance, with negative margins and weak cash flow generation. Technical analysis indicates bearish momentum, and valuation metrics suggest significant challenges despite a low P/E ratio. The absence of earnings call insights and corporate events leaves these areas unaddressed.

Positive Factors

Market Presence

Gafisa's strong presence in major urban centers across Brazil positions it well to capitalize on urbanization trends and housing demand.

Revenue Model

A diversified revenue model, including land development and property management, provides multiple income streams and reduces reliance on a single market segment.

Strategic Collaborations

Strategic partnerships enhance project scale and reach, potentially leading to increased sales and market share.

Negative Factors

Revenue Decline

Declining revenues indicate potential market share loss or reduced demand, which could impact long-term growth and profitability.

Negative Margins

Negative margins highlight operational challenges, which may require cost restructuring or efficiency improvements to achieve profitability.

Weak Cash Flow

Weak cash generation can limit investment in growth opportunities and strain financial flexibility, affecting long-term sustainability.

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 and commercial real estate properties. The company's revenue model is heavily reliant on the development and sale of residential units, which includes a range of products from affordable housing to luxury apartments. Gafisa also earns income from land development and property management services. Key revenue streams include direct sales to consumers, partnerships with financial institutions for financing options, and joint ventures with other developers to enhance project scale and reach. Additionally, the company may benefit from favorable economic conditions, government housing incentives, and strategic collaborations that bolster its market presence and sales capabilities.

Gafisa SA Financial Statement Overview

Summary

Gafisa SA faces significant financial challenges across all verticals. The income statement shows declining revenues and negative margins, indicating operational inefficiencies. The balance sheet is moderately leveraged but suffers from negative returns on equity. Cash flow analysis highlights weak cash generation, further stressing the need for strategic interventions to improve financial health.

Income Statement

Gafisa SA's income statement reflects significant challenges, with negative gross and net profit margins indicating operational inefficiencies. The company has experienced declining revenues over the past periods, with a notable revenue contraction in the TTM period. The EBIT and EBITDA margins are also negative, highlighting ongoing profitability issues. These factors contribute to a low score, reflecting the need for strategic improvements to reverse the negative trends.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, which has improved slightly in the TTM period. However, the return on equity remains negative, indicating that the company is not generating sufficient returns on its equity base. The equity ratio is stable, suggesting a balanced asset structure. While the debt levels are manageable, the negative ROE and profitability issues weigh on the overall score.

Cash Flow

Cash flow analysis reveals a concerning decline in free cash flow growth in the TTM period, coupled with a low operating cash flow to net income ratio. Although the free cash flow to net income ratio is positive, the overall cash flow position is weak, reflecting operational challenges. The company needs to improve its cash generation capabilities to enhance financial stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	969.42M	1.01B	1.10B	1.14B	818.31M	884.04M
Gross Profit	-79.59M	-54.33M	-46.45M	121.40M	208.63M	181.22M
EBITDA	76.30M	104.31M	7.87M	-84.33M	39.12M	4.46M
Net Income	-37.17M	-40.58M	-195.31M	-83.17M	90.19M	-77.00M
Balance Sheet
Total Assets	5.15B	5.30B	5.13B	5.53B	4.72B	3.75B
Cash, Cash Equivalents and Short-Term Investments	12.33M	343.53M	78.30M	460.48M	452.84M	446.57M
Total Debt	1.63B	1.89B	1.83B	1.99B	1.57B	934.80M
Total Liabilities	3.15B	3.35B	3.42B	3.76B	2.91B	2.19B
Stockholders Equity	2.00B	1.95B	1.71B	1.77B	1.82B	1.56B
Cash Flow
Free Cash Flow	-13.10M	148.68M	117.68M	-219.94M	-321.66M	-469.64M
Operating Cash Flow	7.47M	160.71M	132.60M	-90.61M	-279.92M	-452.89M
Investing Cash Flow	-136.21M	-108.44M	225.04M	10.56M	-284.08M	-237.93M
Financing Cash Flow	92.72M	-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: Neutral

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 0.11, below the 50-day MA of 0.14, and below the 200-day MA of 0.36, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 36.97 is Neutral, neither overbought nor oversold. The STOCH value of 34.68 is Neutral, 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
HOV	72 Outperform	$827.16M	6.49	20.08%	―	7.97%	-35.64%
LEGH	64 Neutral	$483.34M	10.30	9.62%	―	10.25%	-10.52%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BZH	54 Neutral	$684.78M	14.98	3.67%	―	1.77%	-66.27%
UHG	45 Neutral	$63.52M	―	-51.69%	―	-6.20%	24.90%
GFASY	37 Underperform	$12.10M	-0.04	-1.94%	―	-12.98%	144.89%