Gafisa SA (GFASY) AI Stock Analysis

• Market Cap: $24.07M
• Dividend Yield: 5.57%
• Average Volume (3M): 103.00
• Price to Earnings (P/E): 20.6
• Beta (1Y): -0.22
• Revenue Growth: -12.35%
• EPS Growth: 48.64%
• Country: US
• Employees: 295
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Residential Construction
• EPS (TTM): 0.02
• Shares Outstanding: 111,622,170
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 103
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 12.52
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: -3.79
• Enterprise Value/Ebitda: 3.95
• 1Y Price Target: $0.50
• Price Target Upside: 150.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 41 Neutral
• Price Target: $0.00 ▼(-100.00% Downside)

Gafisa SA's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and negative margins. Technical analysis further supports a bearish outlook with indicators suggesting potential for continued downside. While the high dividend yield offers some appeal, the negative P/E ratio highlights ongoing profitability concerns.

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 financial challenges, with negative profit margins and high leverage indicating financial instability. However, improvements in cash flow and a stable equity ratio offer some positive signs.

Income Statement

Gafisa SA's income statement reveals significant challenges, including negative gross and net profit margins in the most recent year, indicating cost inefficiencies and losses. Revenue has fluctuated, with a notable decline over the years except for a brief recovery in 2021. The negative EBIT and EBITDA margins further highlight operational struggles, though there was a positive EBITDA in 2024 due to cost management improvements. Overall, the income statement suggests financial instability, with persistent losses posing a risk.

Balance Sheet

The balance sheet shows a mixed picture. The debt-to-equity ratio is relatively high, indicating significant leverage which could pose financial risks in adverse conditions. However, the equity ratio has been stable, and there is a gradual increase in shareholder equity, providing some financial cushion. While the company maintains substantial assets, the growing debt levels demand careful management to ensure long-term sustainability.

Cash Flow

Gafisa SA's cash flow statement reflects improvements, particularly in operating cash flow, which turned positive in recent years. Free cash flow has also shown positive growth, indicating better cash management. However, the historical negative operating cash flows and high capital expenditures in previous years highlight past inefficiencies. The current positive trends in cash flow suggest potential for stabilization if sustained.

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: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 0.2 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.27, and below the 200-day MA of 0.42, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 35.46 is Neutral, neither overbought nor oversold. The STOCH value of 15.48 is Positive, 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
LEGH	72 Outperform	652.81M	12.01	10.78%	―	8.79%	2.30%
HOV	68 Neutral	759.56M	6.33	19.02%	―	7.97%	-35.64%
LGIH	68 Neutral	1.25B	7.73	7.58%	―	-7.89%	-19.53%
BZH	59 Neutral	729.17M	10.85	5.56%	―	9.97%	-52.57%
UHG	57 Neutral	238.74M	64.12	6.29%	―	7.51%	-97.77%
GFASY	41 Neutral	$24.07M	20.58	-1.94%	5.57%	-12.35%	48.64%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%