Alsea SAB de CV (ALSEA*) 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

Alsea SAB de CV

CMR SAB de CV

Why is Alsea SAB de CV ?

High Debt company with Weak Long Term Fundamental Strength

The company has declared Negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at MXN 10,625.4 MM
INTEREST(9M) At MXN 3,474.98 MM has Grown at 27.27%
INVENTORY TURNOVER RATIO(HY) Lowest at 8.16 times

With ROE of 25.12%, it has a expensive valuation with a 5.32 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 22.53%, its profits have fallen by -32.5%

Majority shareholders : Non Institution

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Alsea SAB de CV should be less than 10%
Overall Portfolio exposure to Leisure Services should be less than 30%

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

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

Is Alsea SAB de CV for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Alsea SAB de CV

22.53%

70.26

30.34%

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)

14.73%

EBIT Growth (5y)

61.51%

EBIT to Interest (avg)

1.29

Debt to EBITDA (avg)

2.35

Net Debt to Equity (avg)

3.83

Sales to Capital Employed (avg)

1.87

Tax Ratio

35.79%

Dividend Payout Ratio

56.31%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

15.40%

ROE (avg)

22.43%

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

5.32

EV to EBIT

10.21

EV to EBITDA

4.54

EV to Capital Employed

1.87

EV to Sales

0.92

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

18.34%

ROE (Latest)

25.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

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

17What is working for the Company

PRE-TAX PROFIT(Q)

At MXN 1,009.34 MM has Grown at 396.72%

INTEREST COVERAGE RATIO(Q)

Highest at 392.2

NET PROFIT(Q)

At MXN 504.82 MM has Grown at 265.36%

RAW MATERIAL COST(Y)

Fallen by 1.12% (YoY

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at MXN 10,625.4 MM

INTEREST(9M)

At MXN 3,474.98 MM has Grown at 27.27%

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.16 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 18.74 times

Here's what is working for Alsea SAB de CV

Pre-Tax Profit

At MXN 1,009.34 MM has Grown at 396.72%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (MXN MM)

Interest Coverage Ratio

Highest at 392.2

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At MXN 504.82 MM has Grown at 265.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (MXN MM)

Raw Material Cost

Fallen by 1.12% (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 Alsea SAB de CV

Interest

At MXN 3,474.98 MM has Grown at 27.27%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Operating Cash Flow

Lowest at MXN 10,625.4 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (MXN MM)

Inventory Turnover Ratio

Lowest at 8.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 18.74 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio