City Auto Corp. (CTF) 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

I.P.A Investments Group JSC

Vietnam National Petroleum Corp.

Viglacera Corp.

Everland Group JSC

Lizen JSC

Hanoi Investment General Corp.

Vinacomin-Northern Coal Trading JSC

Southern Gas Trading JSC

City Auto Corp.

SMC Investment Trading JSC

Nam Song Hau Trading Investing Petroleum JSC

Why is City Auto Corp. ?

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

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 2.61% signifying low profitability per unit of total capital (equity and debt)

The company has declared negative results in Jan 70 after 2 consecutive negative quarters

PRE-TAX PROFIT(Q) At VND 19,410.14 MM has Fallen at -56.97%
NET PROFIT(Q) At VND 8,017.12 MM has Fallen at -77.98%
ROCE(HY) Lowest at 1.22%

With ROE of 4.61%, it has a very expensive valuation with a 1.85 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -6.76%, its profits have risen by 18.5% ; the PEG ratio of the company is 3.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.76% returns in the last 1 year, the stock has also underperformed Vietnam VN Ho Chi Minh Index 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 Trading & Distributors)

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

Is City Auto Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

City Auto Corp.

-6.76%

-1.30

23.88%

Vietnam VN Ho Chi Minh Index

43.59%

1.93

22.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.04%

EBIT Growth (5y)

52.93%

EBIT to Interest (avg)

0.58

Debt to EBITDA (avg)

79.55

Net Debt to Equity (avg)

2.36

Sales to Capital Employed (avg)

2.37

Tax Ratio

11.58%

Dividend Payout Ratio

103.16%

Pledged Shares

Institutional Holding

ROCE (avg)

2.61%

ROE (avg)

5.66%

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

1.85

EV to EBIT

392.11

EV to EBITDA

83.69

EV to Capital Employed

1.26

EV to Sales

0.48

PEG Ratio

3.72

Dividend Yield

0.46%

ROCE (Latest)

0.32%

ROE (Latest)

4.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at VND 36,555.26 MM

CASH AND EQV(HY)

Highest at VND 279,102.4 MM

-22What is not working for the Company

PRE-TAX PROFIT(Q)

At VND 19,410.14 MM has Fallen at -56.97%

NET PROFIT(Q)

At VND 8,017.12 MM has Fallen at -77.98%

ROCE(HY)

Lowest at 1.22%

RAW MATERIAL COST(Y)

Grown by 60.68% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 233.89 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.71 times

NET SALES(Q)

Fallen at -13%

OPERATING PROFIT(Q)

Lowest at VND -54,358.3 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.26 %

Here's what is working for City Auto Corp.

Operating Cash Flow

Highest at VND 36,555.26 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 (VND MM)

Cash and Eqv

Highest at VND 279,102.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for City Auto Corp.

Pre-Tax Profit

At VND 19,410.14 MM has Fallen at -56.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (VND MM)

Net Profit

At VND 8,017.12 MM has Fallen at -77.98%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (VND MM)

Net Sales

Fallen at -13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (VND MM)

Operating Profit

Lowest at VND -54,358.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (VND MM)

Operating Profit Margin

Lowest at -2.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 233.89 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 10.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 60.68% (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