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

Alpek SAB de CV

Cydsa SAB de CV

Alfa 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 -8.60% and Operating profit at -6.74% over the last 5 years
The company is Net-Debt Free
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)

Flat results in Jun 26

OPERATING CASH FLOW(Y) Lowest at MXN 8,967.99 MM
NET PROFIT(HY) At MXN 2,861.85 MM has Grown at -40.57%
INTEREST COVERAGE RATIO(Q) Lowest at 250.35

With ROE of 48.24%, it has a attractive valuation with a 5.92 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 23.40%, its profits have risen by 3919.5%

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 Specialty Chemicals)

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

Is Alfa SAB de CV for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Alfa SAB de CV

21.27%

77.64

24.29%

Mexico IPC

14.41%

0.77

19.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.60%

EBIT Growth (5y)

-6.74%

EBIT to Interest (avg)

2.82

Debt to EBITDA (avg)

2.83

Net Debt to Equity (avg)

6.20

Sales to Capital Employed (avg)

1.94

Tax Ratio

42.35%

Dividend Payout Ratio

30.98%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

20.08%

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

5.92

EV to EBIT

10.44

EV to EBITDA

7.69

EV to Capital Employed

2.16

EV to Sales

0.78

PEG Ratio

Dividend Yield

ROCE (Latest)

20.71%

ROE (Latest)

48.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

13What is working for the Company

ROCE(HY)

Highest at 39.53%

INTEREST COVERAGE RATIO(Q)

Highest at 332.52

OPERATING PROFIT MARGIN(Q)

Highest at 11.24 %

RAW MATERIAL COST(Y)

Fallen by -10.31% (YoY

NET PROFIT(9M)

Higher at MXN 4,451.63 MM

OPERATING PROFIT(Q)

Highest at MXN 4,765.02 MM

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at MXN 8,967.99 MM

NET PROFIT(HY)

At MXN 2,861.85 MM has Grown at -40.57%

INTEREST COVERAGE RATIO(Q)

Lowest at 250.35

CASH AND EQV(HY)

Lowest at MXN 18,465.01 MM

INTEREST(Q)

Highest at MXN 1,433.01 MM

OPERATING PROFIT(Q)

Lowest at MXN 3,587.56 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.47 %

Here's what is working for Alfa SAB de CV

Interest Coverage Ratio

Highest at 332.52

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 11.24 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Operating Profit

Highest at MXN 4,765.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (MXN MM)

Raw Material Cost

Fallen by -10.31% (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

Interest Coverage Ratio

Lowest at 250.35

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At MXN 2,861.85 MM has Grown at -40.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (MXN MM)

Operating Cash Flow

Lowest at MXN 8,967.99 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (MXN MM)

Interest

Highest at MXN 1,433.01 MM

in the last five periods and Increased by 8.01% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Operating Profit

Lowest at MXN 3,587.56 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (MXN MM)

Operating Profit Margin

Lowest at 8.47 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at MXN 18,465.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents