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. ?

With a fall in Net Sales of -23.09%, the company declared Very Negative results in Mar 26

The company has declared negative results in Mar 26 after 3 consecutive negative quarters
PRE-TAX PROFIT(Q) At MXN 510.41 MM has Fallen at -67.61%
INTEREST COVERAGE RATIO(Q) Lowest at 1,317.62
RAW MATERIAL COST(Y) Grown by 8.79% (YoY)

With ROE of 12.58%, it has a fair valuation with a 0.96 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 -37.43%, its profits have risen by 103.1% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -37.43% 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 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 Becle, S.A.B. de C.V. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

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

-38.42%

-1.73

34.68%

Mexico IPC

11.57%

0.71

19.23%

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)

0.49

Tax Ratio

23.50%

Dividend Payout Ratio

22.62%

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

0.96

EV to EBIT

3.82

EV to EBITDA

3.60

EV to Capital Employed

0.96

EV to Sales

1.70

PEG Ratio

0.07

Dividend Yield

ROCE (Latest)

25.13%

ROE (Latest)

12.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 12.99 %

NET PROFIT(9M)

Higher at MXN 5,867.02 MM

-24What is not working for the Company

PRE-TAX PROFIT(Q)

At MXN 510.41 MM has Fallen at -67.61%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,317.62

RAW MATERIAL COST(Y)

Grown by 8.79% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.42 times

NET SALES(Q)

Lowest at MXN 7,404.7 MM

OPERATING PROFIT(Q)

Lowest at MXN 2,962.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 40 %

NET PROFIT(Q)

Lowest at MXN 388.2 MM

EPS(Q)

Lowest at MXN 0.11

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

Debt-Equity Ratio

Lowest at 12.99 % 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

Here's what is not working for Becle, S.A.B. de C.V.

Net Sales

At MXN 7,404.7 MM has Fallen at -23.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (MXN MM)

Pre-Tax Profit

At MXN 510.41 MM has Fallen at -67.61%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (MXN MM)

Interest Coverage Ratio

Lowest at 1,317.62

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At MXN 388.2 MM has Fallen at -66.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (MXN MM)

Net Sales

Lowest at MXN 7,404.7 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (MXN MM)

Operating Profit

Lowest at MXN 2,962.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (MXN MM)

Operating Profit Margin

Lowest at 40 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at MXN 388.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (MXN MM)

EPS

Lowest at MXN 0.11

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (MXN)

Debtors Turnover Ratio

Lowest at 3.42 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 8.79% (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