Ceylon Cold Stores Plc (CCS.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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ceylon Cold Stores Plc

Why is Ceylon Cold Stores Plc ?

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

Poor long term growth as Operating profit has grown by an annual rate 31.89% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Capital Employed (avg) of 15.67% signifying low profitability per unit of total capital (equity and debt)

The company has declared Positive results for the last 6 consecutive quarters

ROCE(HY) Highest at 26.96%
NET SALES(Q) Highest at LKR 43,199.78 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 86.72%

With ROE of 25.87%, it has a very attractive valuation with a 4.95 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 62.65%, its profits have risen by 37.4% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ceylon Cold Stores Plc should be less than 10%
Overall Portfolio exposure to Beverages should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Beverages)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ceylon Cold Stores Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Ceylon Cold Stores Plc

61.19%

2.51

29.45%

Sri Lanka CSE All Share

60.36%

3.56

17.37%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.49%

EBIT Growth (5y)

31.89%

EBIT to Interest (avg)

2.18

Debt to EBITDA (avg)

1.99

Net Debt to Equity (avg)

0.63

Sales to Capital Employed (avg)

3.86

Tax Ratio

33.82%

Dividend Payout Ratio

86.14%

Pledged Shares

Institutional Holding

ROCE (avg)

15.67%

ROE (avg)

15.96%

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

4.95

EV to EBIT

12.14

EV to EBITDA

8.32

EV to Capital Employed

3.36

EV to Sales

0.78

PEG Ratio

0.51

Dividend Yield

0.27%

ROCE (Latest)

27.72%

ROE (Latest)

25.87%

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

No Trend

Mildly Bearish

OBV

Mildly Bearish

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

7What is working for the Company

ROCE(HY)

Highest at 26.96%

NET SALES(Q)

Highest at LKR 43,199.78 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 86.72%

INVENTORY TURNOVER RATIO(HY)

Highest at 11.23%

DIVIDEND PER SHARE(HY)

Highest at LKR 28.42

-4What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 8.73% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 8.4 %

NET PROFIT(Q)

Lowest at LKR 1,092.67 MM

EPS(Q)

Lowest at LKR 1.15

Here's what is working for Ceylon Cold Stores Plc

Net Sales

Highest at LKR 43,199.78 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (LKR MM)

Inventory Turnover Ratio

Highest at 11.23%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at LKR 28.42

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Dividend Payout Ratio

Highest at 86.72%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at LKR 1,268.16 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 Ceylon Cold Stores Plc

Operating Profit Margin

Lowest at 8.4 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at LKR 1,092.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

EPS

Lowest at LKR 1.15

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Raw Material Cost

Grown by 8.73% (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