Alfa SAB de CV (ALFAA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Alfa SAB de CV

Cydsa SAB de CV

Alpek SAB de CV

Why is Alfa SAB de CV ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -9.37% and Operating profit at -2.78% 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 Capital Employed (avg) of 19.51% signifying low profitability per unit of total capital (equity and debt)
NET PROFIT(Q) At MXN 1,589.79 MM has Grown at 4,226.39%
ROCE(HY) Highest at 31.81%
OPERATING PROFIT(Q) Highest at MXN 4,618.43 MM

With ROE of 15.86%, it has a risky valuation with a 5.68 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 31.58%, its profits have risen by 257% ; the PEG ratio of the company is 0.2

Majority shareholders : FIIs

Market Beating performance in long term as well as near term

Along with generating 31.58% returns in the last 1 year, the stock has outperformed Mexico IPC in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Alfa SAB de CV should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

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

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Alfa SAB de CV for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Alfa SAB de CV

31.58%

58.38

34.86%

Mexico IPC

31.4%

1.71

18.32%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-9.37%

EBIT Growth (5y)

-2.78%

EBIT to Interest (avg)

2.84

Debt to EBITDA (avg)

2.86

Net Debt to Equity (avg)

6.20

Sales to Capital Employed (avg)

2.33

Tax Ratio

86.51%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

19.51%

ROE (avg)

10.72%

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

5.68

EV to EBIT

10.06

EV to EBITDA

7.30

EV to Capital Employed

2.10

EV to Sales

0.73

PEG Ratio

0.15

Dividend Yield

ROCE (Latest)

20.90%

ROE (Latest)

15.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

21What is working for the Company

NET PROFIT(Q)

At MXN 1,589.79 MM has Grown at 4,226.39%

ROCE(HY)

Highest at 31.81%

OPERATING PROFIT(Q)

Highest at MXN 4,618.43 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.24 %

RAW MATERIAL COST(Y)

Fallen by -5.28% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.39 times

DEBTORS TURNOVER RATIO(HY)

Highest at 10.43 times

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at MXN 7,378.98 MM

NET SALES(9M)

At MXN 135,148.04 MM has Grown at -14.9%

CASH AND EQV(HY)

Lowest at MXN 21,748.82 MM

DIVIDEND PER SHARE(HY)

Lowest at MXN 10.43

Here's what is working for Alfa SAB de CV

Net Profit

At MXN 1,589.79 MM has Grown at 4,226.39%

over average net sales of the previous four periods of MXN -38.53 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (MXN MM)

Operating Profit

Highest at MXN 4,618.43 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (MXN MM)

Operating Profit Margin

Highest at 10.24 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Inventory Turnover Ratio

Highest at 6.39 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 10.43 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.28% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Alfa SAB de CV

Net Sales

At MXN 135,148.04 MM has Grown at -14.9%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (MXN MM)

Operating Cash Flow

Lowest at MXN 7,378.98 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (MXN MM)

Cash and Eqv

Lowest at MXN 21,748.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend per share

Lowest at MXN 10.43

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (MXN)