IRB Brasil (Brazil) Buy Hold or Sell Recommendation
| IRBR3 Stock | BRL 40.06 0.93 2.27% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding IRB Brasil Resseguros SA is 'Strong Sell'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell IRB Brasil Resseguros SA given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for IRB Brasil Resseguros SA, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out IRB Brasil Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as IRB and provide practical buy, sell, or hold advice based on investors' constraints. IRB Brasil Resseguros SA. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
IRB |
Execute IRB Brasil Buy or Sell Advice
The IRB recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on IRB Brasil Resseguros SA. Macroaxis does not own or have any residual interests in IRB Brasil Resseguros SA or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute IRB Brasil's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Quite High | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
IRB Brasil Trading Alerts and Improvement Suggestions
| IRB Brasil generated a negative expected return over the last 90 days | |
| IRB Brasil has high historical volatility and very poor performance | |
| IRB Brasil has high likelihood to experience some financial distress in the next 2 years | |
| IRB Brasil Resseguros SA has accumulated 819.11 M in total debt. IRB Brasil Resseguros has a current ratio of 0.83, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist IRB Brasil until it has trouble settling it off, either with new capital or with free cash flow. So, IRB Brasil's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like IRB Brasil Resseguros sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for IRB to invest in growth at high rates of return. When we think about IRB Brasil's use of debt, we should always consider it together with cash and equity. | |
| The entity reported the revenue of 6.28 B. Net Loss for the year was (682.7 M) with loss before overhead, payroll, taxes, and interest of (968.71 M). | |
| IRB Brasil Resseguros SA has accumulated about 1.49 B in cash with (129.86 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.81. | |
| Roughly 27.0% of the company shares are held by company insiders |
IRB Brasil Returns Distribution Density
The distribution of IRB Brasil's historical returns is an attempt to chart the uncertainty of IRB Brasil's future price movements. The chart of the probability distribution of IRB Brasil daily returns describes the distribution of returns around its average expected value. We use IRB Brasil Resseguros SA price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of IRB Brasil returns is essential to provide solid investment advice for IRB Brasil.
| Mean Return | -0.24 | Value At Risk | -6.27 | Potential Upside | 5.35 | Standard Deviation | 3.19 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of IRB Brasil historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
IRB Brasil Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to IRB Brasil or Insurance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that IRB Brasil's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a IRB stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.25 | |
β | Beta against Dow Jones | -0.06 | |
σ | Overall volatility | 3.08 | |
Ir | Information ratio | -0.12 |
IRB Brasil Volatility Alert
IRB Brasil Resseguros SA exhibits very low volatility with skewness of 0.75 and kurtosis of 3.21. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure IRB Brasil's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact IRB Brasil's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.IRB Brasil Fundamentals Vs Peers
Comparing IRB Brasil's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze IRB Brasil's direct or indirect competition across all of the common fundamentals between IRB Brasil and the related equities. This way, we can detect undervalued stocks with similar characteristics as IRB Brasil or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of IRB Brasil's fundamental indicators could also be used in its relative valuation, which is a method of valuing IRB Brasil by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare IRB Brasil to competition |
| Fundamentals | IRB Brasil | Peer Average |
| Return On Equity | -0.24 | -0.31 |
| Return On Asset | -0.0377 | -0.14 |
| Profit Margin | (0.09) % | (1.27) % |
| Operating Margin | (0.14) % | (5.51) % |
| Current Valuation | 2.59 B | 16.62 B |
| Shares Outstanding | 81.84 M | 571.82 M |
| Shares Owned By Insiders | 27.41 % | 10.09 % |
| Shares Owned By Institutions | 14.81 % | 39.21 % |
| Price To Earning | 23.25 X | 28.72 X |
| Price To Book | 0.42 X | 9.51 X |
| Price To Sales | 0.17 X | 11.42 X |
| Revenue | 6.28 B | 9.43 B |
| Gross Profit | (968.71 M) | 27.38 B |
| EBITDA | (1.4 B) | 3.9 B |
| Net Income | (682.7 M) | 570.98 M |
| Cash And Equivalents | 1.49 B | 2.7 B |
| Cash Per Share | 4.81 X | 5.01 X |
| Total Debt | 819.11 M | 5.32 B |
| Current Ratio | 0.85 X | 2.16 X |
| Book Value Per Share | 50.18 X | 1.93 K |
| Cash Flow From Operations | (129.86 M) | 971.22 M |
| Earnings Per Share | (0.52) X | 3.12 X |
| Price To Earnings To Growth | 1.02 X | 4.89 X |
| Target Price | 40.5 | |
| Number Of Employees | 457 | 18.84 K |
| Beta | 0.93 | -0.15 |
| Market Capitalization | 1.82 B | 19.03 B |
| Total Asset | 22.67 B | 29.47 B |
| Z Score | 1.2 | 8.72 |
| Annual Yield | 0.04 % | |
| Net Asset | 22.67 B |
IRB Brasil Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as IRB . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About IRB Brasil Buy or Sell Advice
When is the right time to buy or sell IRB Brasil Resseguros SA? Buying financial instruments such as IRB Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Additional Tools for IRB Stock Analysis
When running IRB Brasil's price analysis, check to measure IRB Brasil's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy IRB Brasil is operating at the current time. Most of IRB Brasil's value examination focuses on studying past and present price action to predict the probability of IRB Brasil's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move IRB Brasil's price. Additionally, you may evaluate how the addition of IRB Brasil to your portfolios can decrease your overall portfolio volatility.