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M. Dias Branco S.A. Indústria e Comércio de Alimentos

MDIA3.SA
37
Packaged Foods · Consumer Defensive
Price
R$17.30
+0.33 (+1.94%)
Market Cap
R$5.80B
Exchange
B3 S.A.
Winston Score
37
Winston is serious
Below-average fundamentals — multiple weak pillars.
Data as of Aug 24, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Mixed
Cash Flow
Strong
Stability
Good
Valuation
Good
Dividends
Mixed

Winston Score History

The full picture

M. Dias Branco S.A. Indústria e Comércio de Alimentos is a leading Brazilian food enterprise primarily engaged in the manufacturing, distribution, and sale of an extensive range of food items, particularly cookies and crackers, within Brazil. Its broad product portfolio encompasses pasta, various wheat derivatives like flour and bran, baking ingredients such as cake mix, spreads including margarine and vegetable cream, cakes, corn and wheat-based snacks, toast, chocolate-coated biscuits, breakfast cereals, and powdered beverages. Additionally, it provides healthy food options, seasonings, sauces, and condiments. The company also actively participates in wheat milling activities. These diverse products are marketed under numerous well-known brand names, including Adria, Basilar, Bonsabor, Estrela, Isabela, Finna, Fortaleza, Medalha de Ouro, Pelaggio, Pilar, Piraquê, Predilleto, Puro Sabor, Richester, Salsitos, Vitarella, Zabet, Fit Food, Frontera, Smart, and Taste&Co. Beyond its domestic market presence, the firm also exports its goods internationally. Established in 1936, M. Dias Branco S.A. Indústria e Comércio de Alimentos maintains its corporate headquarters in Eusébio, Brazil.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-0.9% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-21.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

R$21M/ year

Rising (+26% vs prior year)

0.2% of revenue

Below sector average (2%)

R&D investment increasing — building for the future

Cash Position

Cash flow positive

R$2.6B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

M. Dias Branco S.A. Indústria e Comércio de Alimentos's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

0.6% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 339.0M (2021) → 337.1M (2025)

Score breakdown

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Quality

Profit per sale
Gross Margin
28.3%
Modest — 28.3% gross margin
Profit after running costs
Operating Margin
2.6%
Thin — 2.6% operating margin
Return on the money invested
ROCE
0.7%
Weak — 0.7% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
+6.1%
Slow sales growth (+6.1% YoY)
Profit growth
EPS YoY
+10.3%
Earnings growing (+10.3% YoY)

Healthy double-digit earnings growth — what compounders look like.

How steady the profit is
EPS Consistency
3/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
188%
Turns 188% of profit into real cash
Spare cash per sale
FCF Margin
8.5%
Modest free cash flow (8.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.18
Conservative — low debt load (0.18)
Covers its interest
Interest Cover
0.25x
Dangerous — barely covers interest (0.3x)

Interest coverage below 1. Their profits don't cover the interest bill.

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Valuation

Price vs profit
P/E Ratio (TTM)
9.0x
Attractive valuation — P/E 9.0

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
-0.6
SLOWING
Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend
Dividend Yield
2.08%
Moderate income — 2.08% yield

Standard yield zone for stable dividend payers. A meaningful piece of total return.

Dividend record
Dividend Growth
+0.0%
Dividend flat

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