CMC Corp. (Vietnam) (CMG) 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

Yeah1 Group Corp.

FPT Corp.

CMC Corp. (Vietnam)

Information & Networking Technology JSC

Sara JSC

Why is CMC Corp. (Vietnam) ?

High Management Efficiency with a high ROCE of 15.44%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 4.15

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 15.44%

Flat results in Jun 25

INTEREST(HY) At VND 44,101.8 MM has Grown at 28.64%
ROCE(HY) Lowest at 10.99%
RAW MATERIAL COST(Y) Grown by 6.97% (YoY)

With ROE of 13.32%, it has a expensive valuation with a 2.61 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 -30.28%, its profits have risen by 2.7%

Below par performance in long term as well as near term

Along with generating -30.28% returns in the last 1 year, the stock has also underperformed Vietnam VN Ho Chi Minh Index in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CMC Corp. (Vietnam) should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is CMC Corp. (Vietnam) for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

CMC Corp. (Vietnam)

-28.66%

-1.17

36.65%

Vietnam VN Ho Chi Minh Index

29.95%

1.61

21.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.99%

EBIT Growth (5y)

16.23%

EBIT to Interest (avg)

4.15

Debt to EBITDA (avg)

0.16

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

1.73

Tax Ratio

14.73%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.52%

ROCE (avg)

15.44%

ROE (avg)

14.66%

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

2.61

EV to EBIT

16.77

EV to EBITDA

10.56

EV to Capital Employed

2.58

EV to Sales

0.92

PEG Ratio

Dividend Yield

0.19%

ROCE (Latest)

15.40%

ROE (Latest)

13.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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 831,020.95 MM

CASH AND EQV(HY)

Highest at VND 3,788,744.02 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.33%

-8What is not working for the Company

INTEREST(HY)

At VND 44,101.8 MM has Grown at 28.64%

ROCE(HY)

Lowest at 10.99%

RAW MATERIAL COST(Y)

Grown by 6.97% (YoY

Here's what is working for CMC Corp. (Vietnam)

Operating Cash Flow

Highest at VND 831,020.95 MM

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 3,788,744.02 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 5.33%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

At VND 94,113.82 MM has Grown at 697.41%

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 (VND MM)

Here's what is not working for CMC Corp. (Vietnam)

Interest

At VND 44,101.8 MM has Grown at 28.64%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (VND MM)

Raw Material Cost

Grown by 6.97% (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