Minerva SA (MRVSY) AI Stock Analysis

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Minerva SA

(OTC:MRVSY)

Rating:45Neutral

Price Target:

$4.00

▲(12.04% Upside)

Minerva SA faces significant challenges with a weak financial position characterized by high debt and negative equity, contributing to a low financial performance score. Technical indicators suggest a bearish trend, further weighing down the stock's attractiveness. Negative P/E ratio and lack of dividends weaken its valuation profile. Positive cash flow trends offer a glimmer of hope but are overshadowed by broader financial and technical weaknesses.

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

Market Cap

$882.71M

Dividend YieldN/A

Average Volume (3M)107.00

Price to Earnings (P/E)―

Beta (1Y)-0.02

Revenue Growth20.32%

EPS Growth-1078.64%

CountryUS

Employees40,000

SectorConsumer Defensive

Sector Strength65

IndustryAgricultural Farm Products

Share Statistics

EPS (TTM)0.32

Shares Outstanding248,622,340

10 Day Avg. Volume0

30 Day Avg. Volume107

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap4.03

Enterprise Value/Revenue0.09

Enterprise Value/Gross Profit0.47

Enterprise Value/Ebitda1.30

Forecast

1Y Price Target

$4.00

Price Target Upside12.04% Upside

Rating ConsensusHold

Number of Analyst Covering1

Minerva SA Business Overview & Revenue Model

Company DescriptionMinerva SA (MRVSY) is a leading company in the meat processing industry, primarily operating in the production and sale of fresh beef. The company is headquartered in Brazil and has a strong presence in South America, with operations extending to other regions. Minerva SA is engaged in the export and distribution of beef and beef by-products, serving various markets globally. It is recognized for its commitment to quality and sustainability in its production processes.

How the Company Makes MoneyMinerva SA generates revenue primarily through the sale of fresh beef, processed meats, and by-products. The company's key revenue streams include domestic sales within Brazil and international exports to markets in Asia, the Middle East, Europe, and North America. Minerva leverages its extensive logistics and distribution network to ensure efficient delivery of its products, contributing to its profitability. The company also benefits from strategic partnerships with retailers and food service providers, enhancing its market reach and sales volume. Additionally, Minerva's focus on sustainable practices and adherence to high-quality standards supports its brand reputation and demand for its products.

Minerva SA Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q3-2024)

% Change Since: -30.00%|

Next Earnings Date:Nov 05, 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 exhibits growth in revenue and cash flow, yet struggles with profitability and a weak balance sheet. The high debt level and negative equity raise concerns about financial health, while positive cash flow trends provide some reassurance. Continued focus on improving profitability and reducing leverage is essential for long-term 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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	34.07B	26.89B	30.98B	26.97B	19.41B
Gross Profit	7.00B	5.51B	5.74B	4.65B	3.83B
EBITDA	2.20B	2.48B	2.02B	1.95B	2.12B
Net Income	-1.56B	421.05M	652.53M	598.88M	697.09M
Balance Sheet
Total Assets	42.14B	28.59B	21.40B	20.07B	16.92B
Cash, Cash Equivalents and Short-Term Investments	14.46B	12.68B	7.07B	7.30B	6.39B
Total Debt	30.12B	21.58B	13.80B	13.44B	12.87B
Total Liabilities	42.05B	27.93B	20.34B	19.42B	16.08B
Stockholders Equity	-478.64M	174.38M	506.83M	654.13M	840.07M
Cash Flow
Free Cash Flow	5.81B	1.98B	2.32B	2.09B	2.87B
Operating Cash Flow	6.56B	2.70B	3.13B	2.59B	3.22B
Investing Cash Flow	-6.47B	-2.48B	-1.66B	-568.52M	-376.10M
Financing Cash Flow	799.69M	5.35B	-1.45B	-1.97B	-1.83B

Minerva SA Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.57

Price Trends

50DMA

4.23

Negative

100DMA

4.46

Negative

200DMA

4.00

Negative

Market Momentum

MACD

-0.16

Negative

RSI

37.45

Neutral

STOCH

3.95

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MRVSY, the sentiment is Negative. The current price of 3.57 is below the 20-day moving average (MA) of 3.74, below the 50-day MA of 4.23, and below the 200-day MA of 4.00, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 37.45 is Neutral, neither overbought nor oversold. The STOCH value of 3.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MRVSY.

Minerva SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FDP	76 Outperform	$1.72B	11.46	7.49%	3.07%	1.41%	―
BG	73 Outperform	$16.49B	8.23	13.20%	3.51%	-8.87%	―
LND	71 Outperform	$372.33M	6.42	15.25%	6.48%	1.09%	21.46%
TSN	69 Neutral	$19.11B	24.35	4.31%	3.63%	1.99%	―
AGRO	68 Neutral	$901.94M	14.40	4.51%	3.82%	17.05%	-73.53%
Sector *	63 Neutral	$20.31B	12.55	-7.33%	3.14%	2.97%	-12.13%
MRVSY	45 Neutral	$882.71M	―	-1.90%	―	20.32%	-1078.64%

* Consumer Defensive Sector Average

Performance Comparison

MRVSY

Minerva SA

3.57

-1.90

-34.73%

AGRO

Adecoagro SA

9.14

-1.01

-9.95%

Bunge Global

82.41

-11.33

-12.09%

FDP

Fresh Del Monte Produce

35.80

9.72

37.27%

TSN

Tyson Foods

54.79

-4.92

-8.24%

LND

BrasilAgro Cia Brasileira de Propriedades Agricolas

3.86

-0.64

-14.22%

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.Date of analysis: Jul 10, 2025