ScoreComparison
Why is Central Finance Co. Plc ?
1
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 12.51%
- Poor long term growth as Net Sales has grown by an annual rate of 0.32% and Operating profit at 0.04%
2
Flat results in Mar 26
- RAW MATERIAL COST(Y) Grown by 5.2% (YoY)
- DEBT-EQUITY RATIO (HY) Highest at 81.82 %
- DEBTORS TURNOVER RATIO(HY) Lowest at 1.23 times
3
With ROE of 12.42%, it has a very attractive valuation with a 0.61 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 -20.18%, its profits have risen by 3.7% ; the PEG ratio of the company is 1.3
4
Underperformed the market in the last 1 year
- Even though the market (Sri Lanka CSE All Share) has generated returns of 11.95% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -20.18% returns
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Central Finance Co. Plc should be less than 10%
- Overall Portfolio exposure to Finance should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Central Finance Co. Plc for you?
Low Risk, High Return
Absolute
Risk Adjusted
Volatility
Central Finance Co. Plc
-20.18%
3.18
24.91%
Sri Lanka CSE All Share
11.95%
0.72
16.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.32%
EBIT Growth (5y)
0.04%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.28
Tax Ratio
36.18%
Dividend Payout Ratio
14.42%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.24%
ROE (avg)
12.51%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
5
Industry P/E
Price to Book Value
0.61
EV to EBIT
5.67
EV to EBITDA
5.19
EV to Capital Employed
0.61
EV to Sales
2.28
PEG Ratio
1.33
Dividend Yield
NA
ROCE (Latest)
10.71%
ROE (Latest)
12.42%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend4What is working for the Company
OPERATING CASH FLOW(Y)
Highest at LKR 48,360.27 MM
NET SALES(Q)
Highest at LKR 6,136.69 MM
-3What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 5.2% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 81.82 %
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.23 times
Here's what is working for Central Finance Co. Plc
Operating Cash Flow
Highest at LKR 48,360.27 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Net Sales
Highest at LKR 6,136.69 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Depreciation
Highest at LKR 244.46 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (LKR MM)
Depreciation
At LKR 244.46 MM has Grown at 28.24%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (LKR MM)
Here's what is not working for Central Finance Co. Plc
Debt-Equity Ratio
Highest at 81.82 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio
Lowest at 1.23 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 5.2% (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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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