The most beautiful graph you've ever seen:
Natura has been paying steadily and growing dividends (BRL millions):
Dividends adjusted by inflation have grown at 16% annually in the last 6 years and net equity (also inflation adjusted) has increased more than 600 millions.
Meanwhile, net debt increased nearly 400 millions. That could suggest that dividends payed surpassed FCF generation, as Google data also indicates. On the other hand, shareholder's total return includes the equity increase of 600 million, so I think that the increase in debt is offset by net equity increase (investments in assets).
In the last 3 years, dividends payed averaged 625 and free cash generation 560. So let's consider:
Earnings: 700 millions
Payout: 85%
Discount Rate: 10,1%
Growth: 8% next 10y and 3% subsequently
We got a target price of about 30,00. Sadly, this is nearly its market price, so I will not be able to get a share in this nice company.
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