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MarketScreener Homepage  >  Equities  >  Bolsa de Valores de Sao Paulo  >  Movida Participações S.A.    MOVI3   BRMOVIACNOR0

MOVIDA PARTICIPAÇÕES S.A.

(MOVI3)
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Movida Participações S A : Relatório de Agência de Rating - Relatório Completo - S&P* (versão em Inglês)

02/23/2021 | 01:32pm EST

Movida Participacoes S.A.

Primary Credit Analyst:

Thais R Abdala, Sao Paulo;thais.abdala@spglobal.com

Secondary Contacts:

Felipe Speranzini, Sao Paulo + 55 11 3039 9751;felipe.speranzini@spglobal.comLuisa Vilhena, Sao Paulo + 55 11 3039 9727;luisa.vilhena@spglobal.com

Table Of Contents

Credit Highlights Outlook

Our Base-Case Scenario Company Description Business Risk Financial Risk Liquidity Covenant Analysis

Environmental, Social, And Governance Group Influence

Issue Ratings - Recovery Analysis Reconciliation

Ratings Score Snapshot

Table Of Contents (cont.)

Related Criteria

Related Research

Movida Participacoes S.A.

Business Risk: WEAK

Vulnerable Excellent

Financial Risk: SIGNIFICANT

Highly leveraged Minimal

Brazil National Scale brAA/Stable/--

Credit Highlights

Key Strengths

Key Risks

Solid position as one of the three largest players in the Brazilian car

Highly competitive rent-a-car (RaC) market, resulting in low pricing power;

rental and fleet management market;

Ability to preserve liquidity and leverage, adjusting fleet size by

Limited scale and geographic diversification, operating a total fleet of about

increasing used-vehicle sales; and

118,000 cars;

Adequate access to credit in the local market and support from its

High capex requirements to sustain fleet renewal and expansion; and

parent,

Exposure to cash flow volatility in the RaC segment, which under normal

conditions generates about 50% of total cash.

High exposure to the RaC segment implies risks of greater earnings volatility. Since Simpar's (formerly JSL S.A.) acquisition of Movida in 2013, the company has been investing to expand its fleet substantially to meet the increasing market demand in the RaC and fleet management and outsourcing (GTF) segments. While the latter segment has been growing rapidly over the past few years, the RaC segment still represents about 60% of the company's total fleet. This reduces earnings predictability and raises risks of cash flow volatility due to the segment's following characteristics: short-term contracts, fierce competition, and cyclicality of demand among tourists and corporate customers.

Movida Participacoes S.A.

Chart 1

Solid position in Brazil, but the company lacks the scale and diversification of larger players. We view Movida as well positioned in the Brazilian market, given that it's one of the three largest players with high brand recognition and increasing scale. Nevertheless, Movida operates only in Brazil, with much lower asset and revenue base than those of its peers, such as Localiza Rent a Car S.A. (BB+/Stable/--; brAAA/Stable/--) that has a leading position in the Brazilian market, and Enterprise Holdings, Inc. (A-/Stable/A-2), which is the world's largest car rental company with nearly $22.5 billion (close to R$115 billion) revenues in 2020 and others that have a global presence, such as Avis Budget Group (B+/Negative/--). Movida also generates a lower share of revenue from the more stable GTF segment than its domestic competitor, Companhia de Locação das Américas (brAAA/Stable/--).

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Movida Participações SA published this content on 25 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 February 2021 18:29:04 UTC.


© Publicnow 2021
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Financials
Sales 2021 5 349 M 940 M 940 M
Net income 2021 347 M 60,9 M 60,9 M
Net Debt 2021 3 118 M 548 M 548 M
P/E ratio 2021 14,9x
Yield 2021 1,51%
Capitalization 5 124 M 898 M 900 M
EV / Sales 2021 1,54x
EV / Sales 2022 1,48x
Nbr of Employees 3 266
Free-Float 44,5%
Chart MOVIDA PARTICIPAÇÕES S.A.
Duration : Period :
Movida Participações S.A. Technical Analysis Chart | MarketScreener
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Technical analysis trends MOVIDA PARTICIPAÇÕES S.A.
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 11
Average target price 23,43 BRL
Last Close Price 17,24 BRL
Spread / Highest target 74,0%
Spread / Average Target 35,9%
Spread / Lowest Target -2,55%
EPS Revisions
Managers and Directors
NameTitle
Renato Horta Franklin Chief Executive Officer
Edmar Prado Lopes Neto Chief Financial & Investor Relations Officer
Fernando Antonio Simões Chairman
Ricardo Florence dos Santos Independent Director
Marcelo José Ferreira e Silva Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
MOVIDA PARTICIPAÇÕES S.A.-16.51%898
LOCALIZA RENT A CAR S.A.-11.78%8 011
SIXT SE12.83%5 310
AVIS BUDGET GROUP, INC.61.02%4 353
EUROPCAR MOBILITY GROUP SA-36.30%1 417
BARLOWORLD LIMITED6.86%1 258