Bong AB (BONG) 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

Embellence Group AB

Holmen AB

Bong AB

Svenska Cellulosa AB SCA

Billerud AB

Nordic Paper Holding AB

Rottneros AB

Why is Bong AB ?

Poor Management Efficiency with a low ROCE of 8.42%

The company has been able to generate a Return on Capital Employed (avg) of 8.42% signifying low profitability per unit of total capital (equity and debt)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -11.43%, its profits have fallen by -234.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.43% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 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 Paper, Forest & Jute Products)

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

Is Bong AB for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bong AB

-11.43%

-0.52

56.68%

OMX Stockholm 30

10.97%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.37%

EBIT Growth (5y)

-11.45%

EBIT to Interest (avg)

1.47

Debt to EBITDA (avg)

0.98

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

2.49

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.42%

ROE (avg)

2.30%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.24

EV to EBIT

226.11

EV to EBITDA

3.11

EV to Capital Employed

0.36

EV to Sales

0.12

PEG Ratio

Dividend Yield

ROCE (Latest)

0.06%

ROE (Latest)

-5.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

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

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 104.9 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -1.33% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 7.25 times

DEBTORS TURNOVER RATIO(HY)

Highest at 9.24 times

OPERATING PROFIT(Q)

Highest at SEK 33.8 MM

OPERATING PROFIT MARGIN(Q)

Highest at 7.23 %

PRE-TAX PROFIT(Q)

Highest at SEK 6.3 MM

NET PROFIT(Q)

Highest at SEK 5.8 MM

EPS(Q)

Highest at SEK 0.03

-7What is not working for the Company

NET PROFIT(9M)

At SEK -29.8 MM has Grown at -254.04%

ROCE(HY)

Lowest at -5.38%

CASH AND EQV(HY)

Lowest at SEK 203 MM

Here's what is working for Bong AB

Pre-Tax Profit

At SEK 6.3 MM has Grown at 202.84%

over average net sales of the previous four periods of SEK -6.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 5.8 MM has Grown at 170.87%

over average net sales of the previous four periods of SEK -8.18 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SEK MM)

Operating Cash Flow

Highest at SEK 104.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SEK MM)

Operating Profit

Highest at SEK 33.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SEK MM)

Operating Profit Margin

Highest at 7.23 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at SEK 6.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SEK MM)

Net Profit

Highest at SEK 5.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SEK MM)

EPS

Highest at SEK 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SEK)

Inventory Turnover Ratio

Highest at 7.25 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 9.24 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.33% (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 Bong AB

Cash and Eqv

Lowest at SEK 203 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents