NATU3:BMFBOVESPANatura Cosmeticos SA Analysis

The stock trades at 8.66 BRL, well below the analyst mean target of 11.45 BRL, implying about 32% upside. Despite a high trailing PE of 34.6, the forward PE collapses to 10.5, reflecting expected earnings improvement (forward EPS 0.822 vs trailing 0.25). The price‑to‑book ratio of 0.91 is under one, suggesting the market values the company below its book value. However, the company posted a negative profit margin of –44% and a ROE of –9.6%, indicating current earnings weakness. Technicals are mixed: the 20‑day SMA (9.11) sits above the 50‑day SMA (8.52) but the price remains below both, RSI is neutral at 45, and the MACD is bearish with a negative histogram, while volume trends downward.
The low beta of 0.44 and a sector classification as Consumer Defensive temper volatility, yet the 30‑day realized volatility is a lofty 42%, and the historical max drawdown exceeds 80%, flagging substantial price swings. The balance sheet shows a debt‑to‑equity of 55.6% and cash of 2.25 bn BRL, but operating cash flow is negative, highlighting liquidity concerns. No dividend is paid, so income‑focused investors have little appeal. Overall, the valuation appears attractive relative to book and upside potential, but the earnings quality and cash generation remain fragile.