Answear.com SA () 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

Gamivo SA

Answear.com SA

3R Games SA

hiPower Energy SA

Why is Answear.com SA ?

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 42.26% 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 Equity (avg) of 10.72% signifying low profitability per unit of shareholders funds

Healthy long term growth as Net Sales has grown by an annual rate of 44.82%

The company has declared positive results in Dec'2024 after 3 consecutive negative quarters

OPERATING CASH FLOW(Y) Highest at PLN 165.84 MM
PRE-TAX PROFIT(Q) At PLN 4.57 MM has Grown at 189.43%
NET PROFIT(Q) At PLN 3.66 MM has Grown at 185.29%

With ROE of 7.97%, it has a fair valuation with a 2.38 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 -9.09%, its profits have risen by 211.1% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -9.09% returns in the last 1 year, the stock has also underperformed Poland WIG in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Answear.com SA should be less than 10%
Overall Portfolio exposure to E-Retail/ E-Commerce should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)

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

Is Answear.com SA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Answear.com SA

-9.09%

0.28

32.22%

Poland WIG

39.24%

1.93

20.32%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

44.82%

EBIT Growth (5y)

42.26%

EBIT to Interest (avg)

2.92

Debt to EBITDA (avg)

2.04

Net Debt to Equity (avg)

0.89

Sales to Capital Employed (avg)

3.55

Tax Ratio

45.24%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

15.99%

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

2.38

EV to EBIT

12.28

EV to EBITDA

8.80

EV to Capital Employed

1.72

EV to Sales

0.46

PEG Ratio

0.14

Dividend Yield

ROCE (Latest)

14.02%

ROE (Latest)

7.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Bearish

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

OPERATING CASH FLOW(Y)

Highest at PLN 165.84 MM

PRE-TAX PROFIT(Q)

At PLN 4.57 MM has Grown at 189.43%

NET PROFIT(Q)

At PLN 3.66 MM has Grown at 185.29%

RAW MATERIAL COST(Y)

Fallen by -6.07% (YoY

-3What is not working for the Company

INTEREST(HY)

At PLN 12.53 MM has Grown at 152.35%

Here's what is working for Answear.com SA

Operating Cash Flow

Highest at PLN 165.84 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PLN MM)

Pre-Tax Profit

At PLN 4.57 MM has Grown at 189.43%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (PLN MM)

Net Profit

At PLN 3.66 MM has Grown at 185.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PLN MM)

Raw Material Cost

Fallen by -6.07% (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 Answear.com SA

Interest

At PLN 12.53 MM has Grown at 152.35%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)