Browns Beach Hotels Plc (BBH.N0000) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hayleys Leisure Plc

The Kingsbury Plc

Ceylon Hotels Corp. Plc

Jetwing Symphony PLC

Trans Asia Hotels Plc

Dolphin Hotels Plc

Browns Beach Hotels Plc

Eden Hotel Lanka Plc

Hunas Holdings Plc

Tal Lanka Hotels Plc

Galadari Hotels (Lanka) Plc

Why is Browns Beach Hotels Plc ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

Poor long term growth as Net Sales has grown by an annual rate of 29.04% and Operating profit at 30.49% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

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 29.73%, its profits have risen by 77.3%

Underperformed the market in the last 1 year

The stock has generated a return of 29.73% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 60.36%

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 Hotels & Resorts)

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

Is Browns Beach Hotels Plc for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Browns Beach Hotels Plc

-100.0%

1.02

60.79%

Sri Lanka CSE All Share

60.36%

3.50

17.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.04%

EBIT Growth (5y)

30.49%

EBIT to Interest (avg)

-0.22

Debt to EBITDA (avg)

205.03

Net Debt to Equity (avg)

-5.85

Sales to Capital Employed (avg)

0.32

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.79%

ROE (avg)

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

-4.26

EV to EBIT

25.58

EV to EBITDA

14.64

EV to Capital Employed

2.21

EV to Sales

4.93

PEG Ratio

Dividend Yield

ROCE (Latest)

8.66%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bearish

OBV

Mildly Bearish

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

26What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 246.15 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by 1.1% (YoY

NET SALES(Q)

Highest at LKR 524.24 MM

OPERATING PROFIT(Q)

Highest at LKR 229.37 MM

OPERATING PROFIT MARGIN(Q)

Highest at 43.75 %

PRE-TAX PROFIT(Q)

Highest at LKR 104.85 MM

NET PROFIT(Q)

Highest at LKR 82.84 MM

EPS(Q)

Highest at LKR 0.64

-2What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 13.68%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.57%

Here's what is working for Browns Beach Hotels Plc

Pre-Tax Profit

At LKR 104.85 MM has Grown at 863.24%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 82.84 MM has Grown at 343.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (LKR MM)

Operating Cash Flow

Highest at LKR 246.15 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Net Sales

Highest at LKR 524.24 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Operating Profit

Highest at LKR 229.37 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Operating Profit Margin

Highest at 43.75 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at LKR 104.85 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 82.84 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 0.64

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Raw Material Cost

Fallen by 1.1% (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 LKR 59.29 MM

in the last five periods

MOJO Watch

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

Depreciation (LKR MM)

Here's what is not working for Browns Beach Hotels Plc

Inventory Turnover Ratio

Lowest at 13.68%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 7.57%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio