GPS Participações e Empreendimentos S.A. (GGPS3.SA) stock analysis

In our weekly check, GPS Participações e Empreendimentos S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 7, red flags: 3.

About GPS Participações e Empreendimentos S.A.

GPS Participações e Empreendimentos S.A. is an Industrials company (Specialty Business Services) based in Brazil, listed on SAO as GGPS3.SA.

What our checks show for GGPS3.SA

Red flags

• Operating profit covers interest only 1.1 times: a weak year could make the payments hard.
• The gross margin fell by 2.1 points, to 14.7%: costs are rising faster than prices.
• The price swings a lot: 55.1% annual volatility. Expect large ups and downs.

Warning signs

• Net debt is 1.1x a year of EBITDA (debt/equity 1.39). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 0.9 points over 5 years, to 5.1%: the company keeps less of each sale as profit.
• The net margin is only 5.1%: little room if costs rise.
• Free cash flow is only 3.4% of revenue.
• A small company (market value $1.45 billion): usually riskier and followed by fewer analysts.
• The stock has fallen as much as 48% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 1.7 years.

Strengths

• Analysts expect earnings per share to grow about 10.5% a year over the next years.
• Revenue grew 24.9% a year over the last 3 years.
• Earnings per share grew 17.2% a year over the last 3 years.
• Net profit grew 21% a year over the last 3 years.
• The dividend takes 0% of profit: there is a cushion.
• The price is 8.5 times earnings (P/E), reasonable for its growth.

Next earnings report: 2026-11-12

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Questions

What grade does GPS Participações e Empreendimentos S.A. (GGPS3.SA) have?

In our weekly check, GPS Participações e Empreendimentos S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 7, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of GGPS3.SA stock?

This week's biggest flags for GPS Participações e Empreendimentos S.A.: Weak interest cover, Gross margin falling, Very volatile. In total 10 of 25 checks show a warning or a red flag.

What does GPS Participações e Empreendimentos S.A. do?

GPS Participações e Empreendimentos S.A. is an Industrials company (Specialty Business Services) based in Brazil, listed on SAO as GGPS3.SA.

When does GPS Participações e Empreendimentos S.A. report earnings next?

The next earnings report is expected on 2026-11-12. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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