Rumo S.A.
Rumo S.A. Fundamental Analysis
Rumo S.A. (RUMOF) shows weak financial fundamentals with a PE ratio of 42.93, profit margin of 6.12%, and ROE of 6.09%. The company generates $13.8B in annual revenue with strong year-over-year growth of 27.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RUMOF's fundamental strength across five key dimensions:
Efficiency Score
WeakRUMOF struggles to generate sufficient returns from assets.
Valuation Score
ModerateRUMOF shows balanced valuation metrics.
Growth Score
ModerateRUMOF shows steady but slowing expansion.
Financial Health Score
ModerateRUMOF shows balanced financial health with some risks.
Profitability Score
WeakRUMOF struggles to sustain strong margins.
Key Financial Metrics
Is RUMOF Expensive or Cheap?
P/E Ratio
RUMOF trades at 42.93 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RUMOF's PEG of 0.07 indicates potential undervaluation.
Price to Book
The market values Rumo S.A. at 2.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.68 times EBITDA. This is generally considered low.
How Well Does RUMOF Make Money?
Net Profit Margin
For every $100 in sales, Rumo S.A. keeps $6.12 as profit after all expenses.
Operating Margin
Core operations generate 41.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.09 in profit for every $100 of shareholder equity.
ROA
Rumo S.A. generates $1.58 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Rumo S.A. generates strong operating cash flow of $6.87B, reflecting robust business health.
Free Cash Flow
Rumo S.A. produces free cash flow of $773.72M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.42 in free cash annually.
FCF Yield
RUMOF converts 2.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
42.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.63
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.26
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How RUMOF Stacks Against Its Sector Peers
| Metric | RUMOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 42.93 | 25.96 | Worse (Expensive) |
| ROE | 6.09% | 1263.00% | Weak |
| Net Margin | 6.12% | -41827.00% (disorted) | Weak |
| Debt/Equity | 2.26 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.60 | 10.05 | Neutral |
| ROA | 1.58% | -1497918.00% (disorted) | Weak |
RUMOF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Rumo S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
65.69%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-203.87%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
83.24%
Industry Style: Cyclical, Value, Infrastructure
High Growth