Acerinox SA (ACX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Acerinox SA

Tubacex SA

Tubos Reunidos SA

Why is Acerinox SA ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

Poor long term growth as Net Sales has grown by an annual rate of -3.21% and Operating profit at -3.93% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 2.66% signifying low profitability per unit of shareholders funds

With ROE of 1.66%, it has a Very Expensive valuation with a 1.36 Price to Book Value

Over the past year, while the stock has generated a return of 17.80%, its profits have fallen by -16.5%

Underperformed the market in the last 1 year

The stock has generated a return of 17.80% in the last 1 year, much lower than market (Spain IBEX 35) returns of 43.21%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Ferrous Metals)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Acerinox SA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Acerinox SA

19.44%

-3.19

29.09%

Spain IBEX 35

43.26%

2.49

17.33%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.21%

EBIT Growth (5y)

-3.93%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

2.16

Net Debt to Equity (avg)

0.44

Sales to Capital Employed (avg)

0.92

Tax Ratio

Dividend Payout Ratio

55.66%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

6.05%

ROE (avg)

2.66%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.36

EV to EBIT

26.37

EV to EBITDA

12.69

EV to Capital Employed

1.23

EV to Sales

1.05

PEG Ratio

Dividend Yield

21.99%

ROCE (Latest)

4.66%

ROE (Latest)

1.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for Acerinox SA

Cash and Cash Equivalents - Half Yearly

Highest at EUR 1,793.68 MM

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents (EUR MM)

Debt-Equity Ratio - Half Yearly

Lowest at 0.14 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Acerinox SA

Net Sales - Half-Yearly

At EUR 3,086 MM has Fallen at -20.20 %

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (EUR MM)

Profit After Tax (PAT) - Annual

At EUR 385.47 MM has Grown at -29.61 %

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (EUR MM)

Interest - Annual

At EUR 101.04 MM has Grown at 60.90 %

over previous Year

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

Operating Profit to Interest - Half-Yearly

Lowest at 4.47 times

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest (EUR MM)

Net Sales - Half-Yearly

Lowest at EUR 3,086 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (EUR MM)

Operating Profit (PBDIT) - Half-Yearly

Lowest at EUR 239 MM.

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (EUR MM)

Operating Profit Margin - Half-Yearly

Lowest at 7.75%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales (EUR MM)

Profit Before Tax less Other Income (PBT) - Half-Yearly

Lowest at EUR 99 MM.

in the last five periods

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (EUR MM)

Dividend Payout Ratio (DPR) - Annually

Lowest at 0.00 %

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Non Operating Income - Half-Yearly

Highest at EUR 47 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income (EUR MM)