Arca Continental SAB de CV (AC*) 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

Arca Continental SAB de CV

Organizacion Cultiba SAB de CV

Why is Arca Continental SAB de CV ?

DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
ROCE(HY) Lowest at 14.63%
INTEREST COVERAGE RATIO(Q) Lowest at 538.47

With ROE of 19.32%, it has a very expensive valuation with a 2.40 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 -3.42%, its profits have risen by 11.3% ; the PEG ratio of the company is 1.1

Below par performance in long term as well as near term

Along with generating -3.42% returns in the last 1 year, the stock has also underperformed Mexico IPC in the last 3 years, 1 year and 3 months

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 Beverages)

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

Is Arca Continental SAB de CV for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Arca Continental SAB de CV

-3.42%

157.41

23.05%

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)

8.13%

EBIT Growth (5y)

11.80%

EBIT to Interest (avg)

6.92

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

1.33

Tax Ratio

32.61%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

22.22%

ROE (avg)

15.91%

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

2.40

EV to EBIT

8.55

EV to EBITDA

6.82

EV to Capital Employed

2.12

EV to Sales

1.34

PEG Ratio

1.10

Dividend Yield

0.01%

ROCE (Latest)

24.75%

ROE (Latest)

19.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.77% (YoY

EPS(Q)

Highest at MXN 11.53

-17What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

ROCE(HY)

Lowest at 14.63%

INTEREST COVERAGE RATIO(Q)

Lowest at 538.47

DEBT-EQUITY RATIO (HY)

Highest at 27.52 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.72 times

DIVIDEND PER SHARE(HY)

Lowest at MXN 11.21

INTEREST(Q)

Highest at MXN 2,460.72 MM

Here's what is working for Arca Continental SAB de CV

EPS

Highest at MXN 11.53

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (MXN)

Raw Material Cost

Fallen by 0.77% (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

Depreciation

Highest at MXN 2,741.86 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (MXN MM)

Here's what is not working for Arca Continental SAB de CV

Interest

At MXN 2,460.72 MM has Grown at 53.6%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Interest Coverage Ratio

Lowest at 538.47

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Dividend Payout Ratio

Lowest at 0% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Interest

Highest at MXN 2,460.72 MM

in the last five periods and Increased by 53.6% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Debt-Equity Ratio

Highest at 27.52 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 9.72 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at MXN 11.21

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (MXN)