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Empreendimentos Pague Menos (BSP:PGMN3) Financial Strength : 5 (As of Dec. 2024)


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What is Empreendimentos Pague Menos Financial Strength?

Empreendimentos Pague Menos has the Financial Strength Rank of 5.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Empreendimentos Pague Menos's Interest Coverage for the quarter that ended in Dec. 2024 was 1.11. Empreendimentos Pague Menos's debt to revenue ratio for the quarter that ended in Dec. 2024 was 0.26. As of today, Empreendimentos Pague Menos's Altman Z-Score is 1.92.


Competitive Comparison of Empreendimentos Pague Menos's Financial Strength

For the Pharmaceutical Retailers subindustry, Empreendimentos Pague Menos's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Empreendimentos Pague Menos's Financial Strength Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Empreendimentos Pague Menos's Financial Strength distribution charts can be found below:

* The bar in red indicates where Empreendimentos Pague Menos's Financial Strength falls into.



Empreendimentos Pague Menos Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Empreendimentos Pague Menos's Interest Expense for the months ended in Dec. 2024 was R$-139 Mil. Its Operating Income for the months ended in Dec. 2024 was R$155 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2024 was R$2,839 Mil.

Empreendimentos Pague Menos's Interest Coverage for the quarter that ended in Dec. 2024 is

Interest Coverage=-1*Operating Income (Q: Dec. 2024 )/Interest Expense (Q: Dec. 2024 )
=-1*154.5/-139.2
=1.11

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Empreendimentos Pague Menos's Debt to Revenue Ratio for the quarter that ended in Dec. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(668.5 + 2838.6) / 13396.8
=0.26

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Empreendimentos Pague Menos has a Z-score of 1.92, indicating it is in Grey Zones. This implies that Empreendimentos Pague Menos is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.92 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Empreendimentos Pague Menos  (BSP:PGMN3) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Empreendimentos Pague Menos has the Financial Strength Rank of 5.


Empreendimentos Pague Menos Financial Strength Related Terms

Thank you for viewing the detailed overview of Empreendimentos Pague Menos's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Empreendimentos Pague Menos Business Description

Traded in Other Exchanges
N/A
Address
Rua Senador Pompeu, no 1.520, Centro, Fortaleza, CE, BRA, CEP 60.025-002
Empreendimentos Pague Menos SA operates a pharmacy chain in Brazil. It engaged in the retail trade of medicines, perfumes, personal hygiene, and beauty products. It revenues arises mainly from the sale of medicines, perfumes, and several self-service products to the end consumer.

Empreendimentos Pague Menos Headlines

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