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Romi S.A (ROMI3) Fair Value & Analysis

Industrials · BR · Market cap R$559M

RS Romi S.A ROMI3 · SA
PriceR$5.85
Fair ValueR$15.53
Upside+165.5%
Quality43/100
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Expensive Growth
Thin margins · 6.1% net margin
Low debt · negative free cash flow
Mixed vs. peers (6/14)
Narrow moat 31/100
Evidence: High Range R$11.65 – R$19.41 Share as image

Fair value as of: Jul 18, 2026

From 16 valuation models · updated 23 days ago

Share price −3.3% over the past month.

Below-average quality, screening 165% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (43/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (R$11.65). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

R$16.94 R$5.77 Fair Value R$15.53 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range R$5.77 – R$16.94 · fair‑value band R$11.65 – R$19.41 · the R$5.85 price screens below the R$15.53 fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Romi S.A (ROMI3) currently trades at R$5.85, while our model-based Fair Value estimate is R$15.53, implying the stock looks roughly 165.5% undervalued today. The Quality Score stands at 43/100 (below-average quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Romi S.A generated revenue of R$1.3B at a net margin of 6.1%. Revenue declined 19.1% year over year. It earns a return on equity of 6.4%. Net debt stands at R$918M. Fundamentals as of Jul 18, 2026

Our scenario range runs from R$11.65 (bear case) to R$19.41 (bull case); at R$5.85, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 36% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -35% fair-value upside, at 165%, ROMI3 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income R$10.25 R$10.61 R$10.56 76
ROIC Compounder R$2.12 R$2.96 R$3.66 72
Gordon GGM R$4.76 R$8.57 R$11.80 70
All 16 models by family
Earnings-Based
Graham-Dodd R$6.21 R$20.94 R$28.06 54
Lynch FV R$4.78 R$6.82 R$8.87 50
PEG = 1.0 R$4.78 R$6.82 R$8.87 46
EPV R$2.12 R$2.96 R$3.66 59
Dividend Discount
Gordon GGM R$4.76 R$8.57 R$11.80 70
DDM Multi-Stage R$4.76 R$7.66 R$9.15 61
Multiples
P/E Multiple R$14.39 R$19.18 R$23.98 63
P/S Multiple R$11.65 R$15.53 R$19.41 58
P/B Multiple R$11.65 R$15.53 R$19.41 55
EV/EBIT R$8.73 R$12.99 R$17.25 53
EV/EBITDA R$13.05 R$18.76 R$24.46 54
EV/Revenue R$5.07 R$8.98 R$12.89 43
Asset-Based
NCAV (Graham) R$6.69 R$8.96 R$13.38 50
Economic Profit
Residual Income R$10.25 R$10.61 R$10.56 76
ROIC Compounder R$2.12 R$2.96 R$3.66 72
Growth Earnings
Growth-Adj P/E R$12.24 R$17.48 R$22.73 68

Widest divergence: Growth Earnings (R$17.48) versus Economic Profit (R$2.96). Highest evidence: Residual Income (76).

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Key figures & financial health

Revenue (TTM) R$1.3B
Revenue growth (YoY) -19.1%
Net margin 6.1%
Return on equity 6.4%
Free cash flow −R$59.6M FY2025
P/E ratio 7.4
More key figures
Operating margin -4.5%
EPS (TTM) R$0.8400
Dividend yield 8.5%
EPS growth (YoY) -76.6%
Net debt R$918M FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 43/100

Of which business quality 42 · Market factors (momentum, volatility) 36

Profitability 31
Margins and returns on capital today
Quality Growth 43
Are margins and returns improving?
Cashflow 27
Earnings quality: real cash, not paper profit
Fin. Strength 38
Balance sheet, leverage, solvency risk
Investment 58
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 16
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 73
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Romi S.A. develops, manufactures, and sells machine tools, plastic processing machines, and gray and nodular castings in Brazil.

Full company description

Romi S.A. develops, manufactures, and sells machine tools, plastic processing machines, and gray and nodular castings in Brazil. The company offers machine tools, such as machining centers, turning centers, CNC lathes, vertical turning centers, vertical CNC lathes, CNC boring, engine lathes, and heavy and extra-heavy duty CNC lathes; plastic injection and blowing moulding machines; Burkhardt+Weber products; and casting and machined parts. It also provides presales and aftersales engineering services, technical assistance, and spare parts. The company serves various industries, including automotive components manufacturing, consumer goods, agricultural machinery and implements, education, and industrial machinery and equipment. It also exports its products. The company was formerly known as Indústrias Romi S.A. Romi S.A. was founded in 1930 and is headquartered in Santa Bárbara d'Oeste, Brazil.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Romi S.A reported revenue of R$1.3B in FY2025 versus R$1.4B in FY2021, a compound −1.0%/yr. Reported net income was R$85.1M in FY2025, compounding −19.6%/yr from FY2021.

Growth Quality 40/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
R$1.3B
Latest YoY
+8.7%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−5.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.4%
Avg. growth/yr (25Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.6%
Revenue −1.0%/yr
FY21 R$1.4B
FY22 R$1.6B
FY23 R$1.2B
FY24 R$1.2B
FY25 R$1.3B
Net income −19.6%/yr
FY21 R$204M
FY22 R$215M
FY23 R$164M
FY24 R$114M
FY25 R$85.1M

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Cite: Fair Value Calculator (2026). "Romi S.A Fair Value". https://www.fairvalue-calculator.com/stock/ROMI3

Peer Group

Industrial Distribution · 102 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 43 · Bottom 25%
Fair Value upside +166% · Top 25%
Return on equity (TTM) 6% · Below median
Return on assets 2% · Bottom 25%
Net margin (TTM) 6% · Above median
Operating margin (TTM) -4% · Bottom 25%
Revenue growth -19% · Bottom 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.39× · Higher than median

Valuation Multiples vs Industrial Distribution median · lower = cheaper

P/E (TTM) 7.4× · Cheaper than 75% of peers
P/B 0.45× · Cheaper than 75% of peers
P/S (TTM) 0.44× · Cheaper than median
EV/EBITDA 7.0× · Cheaper than median
PEG 20.49× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 19
FUTURE 0 · sector 19
PAST 25 · sector 37
HEALTH 81 · sector 90
DIVIDEND 0 · sector 31

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Industrial Distribution stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
W.W. Grainger, Inc GWW $1,376 $625.61 -55%
Fastenal Company FAST $45.49 $20.64 -55%
Ferguson Enterprises Inc FERG $232.02 $151.92 -35%
WESCO International, Inc WCC $326.71 $213.01 -35%
Watsco, Inc WSO $385.16 $268.10 -30%
Toromont Industries Ltd TIH C$232.22 C$127.90 -45%
Applied Industrial Technologies, Inc AIT $329.35 $191.65 -42%
Finning International Inc FTT C$102.50 C$76.38 -25%
Addtech AB ADDTB kr 329.20 kr 156.35 -53%
Core & Main, Inc CNM $44.66 $49.47 +11%

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Frequently asked questions

Is Romi S.A (ROMI3) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of R$15.53 versus a price of R$5.85, about +165% (undervalued).
What is the fair value of ROMI3?
Our model-based fair value for Romi S.A is R$15.53 (as of Jul 18, 2026), built from audited fundamentals. The current price is R$5.85.
What is the quality score of ROMI3?
Romi S.A has a Quality Score of 43/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Romi S.A (ROMI3)?
Romi S.A reported trailing-twelve-month revenue of about R$1.3B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of ROMI3?
The net profit margin of Romi S.A is about 6.1%, meaning it keeps roughly 6.1% of revenue as net income. Based on the latest reported figures.
Does Romi S.A pay a dividend?
Romi S.A currently shows a dividend yield of about 8.50% relative to its recent price (as of Jul 18, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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