TOTVS<\/a> is a Brazilian technology company, mainly dedicated to software applied to business, also known as management software<\/strong>.<\/p>\n In this way, it offers its customers software products, platforms and consultancy services to improve their competitiveness and simplify their operations.<\/p>\n To do this, the tools they offer are integrated and address both the core<\/em> business<\/em> as well as the back<\/em> office<\/em> of its customers, reaching their entire value chain, end-to-end.<\/p>\n With a presence in more than 40 countries, it is considered the largest corporate software provider in Latin America and the sixth largest in the world.<\/p>\n It offers its services in 11 different sectors to both small and large companies.<\/p>\n The solutions offered are as follows:<\/p>\n TOTVS recently created a business unit to offer financial services to its customer base to complement its other products.<\/p>\n They coined the term techfin <\/em>to underline the fact that they are not aiming to become a financial company.<\/p>\n Therefore, they continue to focus on technology.<\/p>\n TOTVS bought in October 89% of the share capital of Supplier, a firm specialising in B2B lending<\/strong> for an amount close to R$455M<\/strong>.<\/p>\n It did so as part of a strategy to enter the world of financial services.<\/p>\n With the intention to start launching the first solutions through Supplier in 2020, TOTVS aims to complement the wide range of services and products it offers.<\/p>\n It also expects to maintain its position as a leader in the sector, and to continue to offer its customers a complete range of products and services tailored to their needs.<\/p>\n Now, we examine and we value<\/a> from the point of view of the corporate finance <\/em>the financial statements of TOTVS.<\/p>\n Also the different multiples and current share price.<\/p>\n Although sales have suffered over the past year, largely due to the global economic situation, and especially the difficulties experienced in Latin America, sales are expected to recover and even exceed those recorded in 2017 in the coming years.<\/p>\n This is due to the growing need for companies to optimise and improve their processes in all areas.<\/p>\n In terms of margins, EBITDA and EBIT, the company has managed to maintain the levels of previous years.<\/p>\n It maintains good data, growing at a good pace and showing no weakening in the need to incur new expenditures or investments to maintain the growth it is and is expected to experience.<\/p>\n Net profit has been sharply reduced in the last year.<\/p>\n However, it is again expected to recover its previous levels in the coming years, in turn boosting ROE to levels close to those obtained in 2016.<\/p>\n The balance sheet is largely unchanged, apart from a slight reduction largely due to the decline in sales over the last year.<\/p>\n Apart from this factor, the company's capital structure appears adequate.<\/p>\n There is no cause for concern, having even reduced the liability values.<\/p>\n<\/span>VARIOUS SOLUTIONS<\/span><\/h2>\n
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<\/span>THE PURCHASE OF SUPPLIER<\/span><\/h2>\n
<\/span>TOTVS RATING<\/span><\/h2>\n
<\/span>FINANCIAL ANALYSIS<\/span><\/h3>\n
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<\/a><\/p>\n<\/span>MULTIPLES AND QUOTATION<\/span><\/h3>\n
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