- Rumo reported net operating revenue of R$3.71 billion for the second quarter, which fell short of the estimated R$3.83 billion.
- The company’s net income was R$333 million for the period.
- Earnings before interest, taxes, depreciation, and amortization (Ebitda) was R$1.88 billion, a significant improvement from the previous year’s loss of R$264 million.
- The Ebitda margin improved to 50.7% from last year’s negative margin of -7.4%.
- Adjusted Ebitda came in at R$2.28 billion, slightly above the estimated R$2.26 billion.
- The adjusted Ebitda margin was 61.4%.
- Analyst recommendations for Rumo include 11 buys, 4 holds, and no sells.
A look at Rumo SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Investors looking at Rumo SA for the long term may find a mix of positive and challenging factors according to Smartkarma’s Smart Scores. With a strong Dividend score of 4 and Momentum score of 4, investors may see stability in returns and potential for growth. However, the Value, Growth, and Resilience scores being lower at 2 each indicate some areas of concern such as the company’s valuation, growth prospects, and ability to weather unexpected situations. Overall, while Rumo SA shows promise in dividends and momentum, there may be caution warranted in evaluating its long-term potential.
Rumo S.A., primarily operating rail networks in Brazil, carries a variety of goods including agricultural commodities, chemicals, construction materials, and automotive parts. Despite facing challenges in valuation, growth, and resilience, the company’s solid performance in dividends and momentum suggests a certain level of stability and growth potential in the future. Investors will need to consider a balanced view of these factors to make informed decisions regarding the long-term outlook for Rumo SA.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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