Minerva SA (MRVSY) AI Stock Analysis

Compare

12 Followers

Top Page

Minerva SA

(OTC:MRVSY)

Rating:55Neutral

Price Target:

$5.00

▼(-1.96%Downside)

MRVSY's overall score is primarily impacted by its strong technical momentum, which is offset by weak financial performance and valuation concerns. Growth in revenue and cash flow are strengths, but high debt and profitability issues pose significant risks. Improvement in financial stability is crucial for a higher score.

Minerva SA (MRVSY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$884.39M

Dividend YieldN/A

Average Volume (3M)0.00

Price to Earnings (P/E)―

Beta (1Y)>-0.01

Revenue Growth20.32%

EPS Growth-1078.64%

CountryUS

Employees40,000

SectorConsumer Defensive

Sector Strength64

IndustryAgricultural Farm Products

Share Statistics

EPS (TTM)0.16

Shares Outstanding151,820,850

10 Day Avg. Volume0

30 Day Avg. Volume0

Financial Highlights & Ratios

PEG Ratio1.36

Price to Book (P/B)15.25

Price to Sales (P/S)0.00

P/FCF Ratio3.33

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Minerva SA Business Overview & Revenue Model

Company DescriptionMinerva S.A. engages in the production and sale of fresh beef, livestock, and by-products in South America. It is also involved in slaughtering and deboning, and processing of cattle, meat, beef, and sheep meat; selling chilled, frozen, and processed meat, as well as beef, pork, and poultry products; exporting and selling live cattle; and breeding and selling live cattle, lambs, pigs, and other live animals. In addition, the company trades in and sells electric power; trades in food products; sells third parties' brands primarily Swift products; and prepares products for animals, which include meat/bone meal, blood, and tallow. It operates 25 cattle slaughtering plants in Brazil, Paraguay, Argentina, Uruguay, and Colombia. The company was founded in 1957 and is headquartered in Barretos, Brazil.

How the Company Makes MoneyMinerva SA generates revenue primarily through the processing and sale of beef products. The company sources cattle from livestock producers and processes the meat in its facilities, which are strategically located to optimize logistics and distribution. Minerva's key revenue streams include fresh beef, processed meat products, and by-products, which are sold to a wide range of customers including supermarkets, food service providers, and export markets. Significant partnerships with retailers and distributors enhance its market reach, while export operations, particularly to countries in the Middle East, Asia, and Europe, contribute substantially to its earnings. Additionally, Minerva engages in trading activities, leveraging its expertise in the beef market to optimize supply chain efficiency and manage commodity risks.

Minerva SA Earnings Call Summary

Earnings Call Date:May 07, 2025

(Q3-2024)

% Change Since: 0.00%|

Next Earnings Date:Aug 06, 2025

Earnings Call Sentiment Positive

Minerva Foods displayed strong financial performance with record revenue and EBITDA figures, complemented by successful strategic acquisitions and sustainability initiatives. However, challenges such as high cattle prices in Brazil and integration of new assets present potential hurdles. Despite these challenges, the company's diversified operations and strategic position in the beef export market provide a positive outlook.

Q3-2024 Updates

Positive Updates

Record Gross Revenue and EBITDA

In Q3 2024, Minerva Foods achieved a gross revenue of BRL 9 billion and a record EBITDA of BRL 813 million with an EBITDA margin of 9.6%.

Successful Acquisition and Integration of Marfrig Assets

Completed the acquisition of Marfrig South America assets, adding 13 industrial plants and 1 distribution center, increasing slaughter capacity by 35%.

Strong Free Cash Flow Generation

Free cash generation reached BRL 667 million in Q3, totaling BRL 1.6 billion over the last 12 months.

Sustainability Initiatives

Invested in clean energy with the acquisition of Irapuru Energia, capable of supplying 9 plants, advancing the sustainability agenda.

Strong Export Performance

Continued to lead beef exports from South America with approximately 20% market share, with notable growth in the NAFTA region.

Negative Updates

Challenges with High Cattle Prices

High cattle prices in Brazil are expected to impact profitability and working capital needs, though the company remains optimistic about long-term prospects.

Operational Integration Challenges

Integration of newly acquired plants may take 4 to 5 quarters to reach Minerva's operational standards.

Macroeconomic Volatility in Argentina

Continued macroeconomic volatility in Argentina presents challenges, although there is optimism for future improvements.

Company Guidance

During the Minerva Foods Q3 2024 earnings call, the company reported strong financial performance, highlighting a gross revenue of approximately BRL 9 billion and a record EBITDA of BRL 813 million with a margin of 9.6%. Over the past 12 months, gross revenue reached BRL 31.4 billion and EBITDA totaled BRL 2.8 billion. Free cash flow generation was impressive, amounting to BRL 667 million for the quarter and BRL 1.6 billion over the last 12 months, contributing to a net leverage ratio of 2.6x net debt over EBITDA. The company completed the acquisition of Marfrig South America's assets, adding 13 new plants and one distribution center across Brazil, Argentina, and Chile, resulting in a total investment of BRL 7.2 billion. The integration of these assets is expected to enhance Minerva's operational efficiency and geographic diversification, with a focus on maximizing synergies and capturing market opportunities in the global beef market, particularly in light of growing demand and restricted supply.

Minerva SA Financial Statement Overview

Summary

Minerva SA shows growth in revenue and cash flow but faces profitability challenges and a weak balance sheet. High debt levels and negative equity raise concerns, while positive cash flow trends offer some reassurance. Improving profitability and reducing leverage are crucial for stability.

Income Statement

Neutral

The income statement shows a mixed performance with rising revenues over the years, notably a 12% increase in the TTM period. However, the company faces challenges with profitability, as evidenced by negative net income margins in recent periods. The EBIT and EBITDA margins indicate some operational efficiency, yet the overall profitability remains a concern due to continued net losses.

Balance Sheet

Negative

The balance sheet reveals a high debt burden with a negative stockholders' equity, indicating financial instability. The debt-to-equity ratio is unfavorable, suggesting a potential risk of over-leverage. Despite this, the company maintains significant cash reserves, which could provide some liquidity support.

Cash Flow

Positive

Cash flow analysis shows a positive trend in operating cash flow, with a moderate operating cash flow to net income ratio, highlighting decent cash generation capabilities. Free cash flow has also been growing, providing a buffer against ongoing net losses. However, the negative net income could pose long-term sustainability issues.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
38.08B	34.07B	26.89B	30.98B	26.97B	19.41B
	Gross Profit
7.59B	7.00B	5.51B	5.74B	4.65B	3.83B
	EBIT
2.69B	2.46B	2.05B	2.43B	1.52B	1.81B
	EBITDA
2.74B	2.20B	2.48B	2.02B	1.95B	2.12B
	Net Income Common Stockholders
-1.20B	-1.56B	421.05M	652.53M	598.88M	697.09M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.87B	14.46B	12.68B	7.07B	7.30B	6.39B
	Total Assets
40.18B	42.14B	28.59B	21.40B	20.07B	16.92B
	Total Debt
27.49B	30.12B	21.58B	13.80B	13.44B	12.87B
	Net Debt
15.62B	15.66B	8.91B	6.73B	6.14B	6.48B
	Total Liabilities
40.25B	42.05B	27.93B	20.34B	19.42B	16.08B
	Stockholders Equity
-650.68M	-478.64M	174.38M	506.83M	654.13M	840.07M
Cash Flow		Free Cash Flow
4.46B	5.81B	1.98B	2.32B	2.09B	2.87B
	Operating Cash Flow
5.25B	6.56B	2.70B	3.13B	2.59B	3.22B
	Investing Cash Flow
-6.51B	-6.47B	-2.48B	-1.66B	-568.52M	-376.10M
	Financing Cash Flow
-3.33B	799.69M	5.35B	-1.45B	-1.97B	-1.83B

Minerva SA Technical Analysis

Technical Analysis Sentiment

Positive

Last Price5.10

Price Trends

50DMA

5.03

Positive

100DMA

4.26

Positive

200DMA

4.17

Positive

Market Momentum

MACD

0.03

Positive

RSI

59.05

Neutral

STOCH

<0.01

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRVSY, the sentiment is Positive. The current price of 5.1 is above the 20-day moving average (MA) of 5.10, above the 50-day MA of 5.03, and above the 200-day MA of 4.17, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 59.05 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 Positive sentiment for MRVSY.

Minerva SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LND	70 Outperform	$376.98M	6.59	15.25%	6.44%	1.09%	21.46%
FDP	69 Neutral	$1.56B	10.62	7.51%	3.69%	-0.64%	―
TSN	67 Neutral	$19.17B	20.91	5.01%	3.65%	1.39%	―
Sector *	65 Neutral	$8.81B	15.01	4.71%	3.72%	3.60%	-2.89%
BG	64 Neutral	$11.60B	10.93	10.36%	3.44%	-10.90%	-36.54%
AGRO	64 Neutral	$956.93M	15.28	4.51%	3.66%	17.05%	-73.53%
MRVSY	55 Neutral	$884.39M	―	-1.90%	―	20.32%	-1078.64%

* Consumer Defensive Sector Average

Performance Comparison

MRVSY

Minerva SA

5.10

0.47

10.15%

AGRO

Adecoagro SA

9.57

0.71

8.01%

Bunge Global

85.69

-13.43

-13.55%

FDP

Fresh Del Monte Produce

33.10

12.35

59.52%

TSN

Tyson Foods

54.73

1.34

2.51%

LND

BrasilAgro Cia Brasileira de Propriedades Agricolas

3.88

-0.55

-12.42%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.