Borouge Plc () 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

Borouge Plc

Why is Borouge Plc ?

High Management Efficiency with a high ROCE of 24.15%

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times

Healthy long term growth as Net Sales has grown by an annual rate of 241.70% and Operating profit at 323.62%

The company has declared Positive results for the last 3 consecutive quarters

INVENTORY TURNOVER RATIO(HY) Highest at 5.84%
DEBTORS TURNOVER RATIO(HY) Highest at 5.75%

With ROE of 26.41%, it has a very attractive valuation with a 4.45 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 4.02%, its profits have risen by 24% ; the PEG ratio of the company is 0.7

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 Specialty Chemicals)

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

Is Borouge Plc for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Borouge Plc

-100.0%

0.56

15.67%

Abu Dhabi Securities Exchange

-1.41%

1.13

8.08%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

163.84%

EBIT Growth (5y)

185.68%

EBIT to Interest (avg)

-15.68

Debt to EBITDA (avg)

1.21

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

0.80

Tax Ratio

28.90%

Dividend Payout Ratio

121.26%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

24.15%

ROE (avg)

24.57%

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

4.89

EV to EBIT

15.53

EV to EBITDA

11.91

EV to Capital Employed

3.47

EV to Sales

4.11

PEG Ratio

Dividend Yield

3.21%

ROCE (Latest)

22.33%

ROE (Latest)

23.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at AED 5,788.27 MM

ROCE(HY)

Lowest at 21.57%

INTEREST COVERAGE RATIO(Q)

Lowest at 822.97

RAW MATERIAL COST(Y)

Grown by 8.91% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.47 times

NET SALES(Q)

Lowest at AED 4,316.49 MM

OPERATING PROFIT(Q)

Lowest at AED 1,236.59 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 28.65 %

PRE-TAX PROFIT(Q)

Lowest at AED 768.75 MM

NET PROFIT(Q)

Lowest at AED 568.23 MM

EPS(Q)

Lowest at AED 0.02

Here's what is not working for Borouge Plc

Operating Cash Flow

Lowest at AED 5,788.27 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (AED MM)

Interest Coverage Ratio

Lowest at 822.97

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at AED 4,316.49 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (AED MM)

Operating Profit

Lowest at AED 1,236.59 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (AED MM)

Operating Profit Margin

Lowest at 28.65 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at AED 768.75 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (AED MM)

Pre-Tax Profit

Fallen at -46.9%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (AED MM)

Net Profit

Lowest at AED 568.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (AED MM)

Net Profit

Fallen at -44.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (AED MM)

EPS

Lowest at AED 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (AED)

Debtors Turnover Ratio

Lowest at 5.47 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 8.91% (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

Non Operating Income

Highest at AED 0.06 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income