Becle, S.A.B. de C.V. (CUERVO*) 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

Becle, S.A.B. de C.V.

Why is Becle, S.A.B. de C.V. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 18.91

Healthy long term growth as Net Sales has grown by an annual rate of 5.27%

With a growth in Net Profit of 360.36%, the company declared Very Positive results in Sep 25

ROCE(HY) Highest at 13.12%
DEBT-EQUITY RATIO (HY) Lowest at 15.38 %
RAW MATERIAL COST(Y) Fallen by -5.74% (YoY)

With ROE of 8.33%, it has a expensive valuation with a 1.16 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 -7.52%, its profits have risen by 53.9% ; the PEG ratio of the company is 0.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.52% returns in the last 1 year, the stock has also underperformed Mexico IPC in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Becle, S.A.B. de C.V. should be less than 10%
Overall Portfolio exposure to Beverages should be less than 30%

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

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

Is Becle, S.A.B. de C.V. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Becle, S.A.B. de C.V.

-7.52%

-1.25

39.77%

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)

5.27%

EBIT Growth (5y)

21.01%

EBIT to Interest (avg)

18.91

Debt to EBITDA (avg)

0.62

Net Debt to Equity (avg)

0.24

Sales to Capital Employed (avg)

0.51

Tax Ratio

23.50%

Dividend Payout Ratio

36.12%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

23.98%

ROE (avg)

8.41%

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

1.16

EV to EBIT

4.79

EV to EBITDA

4.55

EV to Capital Employed

1.13

EV to Sales

2.08

PEG Ratio

0.26

Dividend Yield

ROCE (Latest)

23.59%

ROE (Latest)

8.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

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

27What is working for the Company

ROCE(HY)

Highest at 13.12%

DEBT-EQUITY RATIO (HY)

Lowest at 15.38 %

RAW MATERIAL COST(Y)

Fallen by -5.74% (YoY

CASH AND EQV(HY)

Highest at MXN 19,390.55 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 1.31 times

OPERATING PROFIT MARGIN(Q)

Highest at 48.7 %

PRE-TAX PROFIT(Q)

Highest at MXN 5,572.01 MM

NET PROFIT(Q)

Highest at MXN 4,125.34 MM

EPS(Q)

Highest at MXN 1.15

-2What is not working for the Company

INTEREST(Q)

At MXN 283.57 MM has Grown at 21.71%

Here's what is working for Becle, S.A.B. de C.V.

Pre-Tax Profit

At MXN 5,572.01 MM has Grown at 342.24%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (MXN MM)

Net Profit

At MXN 4,125.34 MM has Grown at 360.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (MXN MM)

Debt-Equity Ratio

Lowest at 15.38 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Profit Margin

Highest at 48.7 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at MXN 5,572.01 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (MXN MM)

Net Profit

Highest at MXN 4,125.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (MXN MM)

EPS

Highest at MXN 1.15

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (MXN)

Cash and Eqv

Highest at MXN 19,390.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 1.31 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -5.74% (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 337.8 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 Becle, S.A.B. de C.V.

Interest

At MXN 283.57 MM has Grown at 21.71%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)