Alumex Plc (ALUM.N0000) 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

Swisstek (Ceylon) Plc

Alumex Plc

Why is Alumex Plc ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 3.34% of 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 15.73% signifying low profitability per unit of total capital (equity and debt)

With ROE of 32.69%, it has a fair valuation with a 2.76 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 17.39%, its profits have risen by 485.5% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 0.7

Underperformed the market in the last 1 year

The stock has generated a return of 17.39% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 41.16%

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 Non - Ferrous Metals)

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

Is Alumex Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Alumex Plc

18.12%

1.96

32.87%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.93%

EBIT Growth (5y)

3.34%

EBIT to Interest (avg)

2.31

Debt to EBITDA (avg)

3.05

Net Debt to Equity (avg)

1.72

Sales to Capital Employed (avg)

1.16

Tax Ratio

44.29%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

15.73%

ROE (avg)

15.30%

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

2.76

EV to EBIT

15.47

EV to EBITDA

12.98

EV to Capital Employed

1.62

EV to Sales

1.40

PEG Ratio

0.02

Dividend Yield

0.65%

ROCE (Latest)

10.45%

ROE (Latest)

32.69%

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

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 2,670.31 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.44 times

-23What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 102.75

RAW MATERIAL COST(Y)

Grown by 38.85% (YoY

NET SALES(Q)

Lowest at LKR 3,659.74 MM

OPERATING PROFIT(Q)

Lowest at LKR 190.23 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.2 %

PRE-TAX PROFIT(Q)

Lowest at LKR -66.03 MM

NET PROFIT(Q)

Lowest at LKR -46.27 MM

EPS(Q)

Lowest at LKR -0.08

Here's what is working for Alumex Plc

Inventory Turnover Ratio

Highest at 2.44 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at LKR 2,670.31 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Here's what is not working for Alumex Plc

Pre-Tax Profit

At LKR -66.03 MM has Fallen at -113.08%

over average net sales of the previous four periods of LKR 504.71 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR -46.27 MM has Fallen at -112.26%

over average net sales of the previous four periods of LKR 377.46 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Interest Coverage Ratio

Lowest at 102.75

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at LKR 3,659.74 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Operating Profit

Lowest at LKR 190.23 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (LKR MM)

Operating Profit Margin

Lowest at 5.2 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at LKR -66.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Net Profit

Lowest at LKR -46.27 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

EPS

Lowest at LKR -0.08

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Raw Material Cost

Grown by 38.85% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales