Consorcio ARA SAB de CV (ARA*) 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

Consorcio ARA SAB de CV

Corpovael SA de CV

Servicios Corporativos Javer SAPI de CV

Desarrolladora Homex SAB de CV

Why is Consorcio ARA SAB de CV ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.17

Positive results in Jun 25

RAW MATERIAL COST(Y) Fallen by -2.52% (YoY)
NET SALES(Q) Highest at MXN 2,074.84 MM

With ROE of 4.57%, it has a attractive valuation with a 0.28 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 6.87%, its profits have risen by 8.3% ; the PEG ratio of the company is 0.7

Underperformed the market in the last 1 year

The stock has generated a return of 6.87% in the last 1 year, much lower than market (Mexico IPC) returns of 26.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Consorcio ARA SAB de CV should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is Consorcio ARA SAB de CV for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Consorcio ARA SAB de CV

-100.0%

0.26

29.85%

Mexico IPC

25.36%

1.61

16.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.38%

EBIT Growth (5y)

11.69%

EBIT to Interest (avg)

9.17

Debt to EBITDA (avg)

0.14

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.40

Tax Ratio

31.97%

Dividend Payout Ratio

29.25%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

4.91%

ROE (avg)

4.16%

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

0.28

EV to EBIT

6.08

EV to EBITDA

5.34

EV to Capital Employed

0.29

EV to Sales

0.61

PEG Ratio

0.74

Dividend Yield

ROCE (Latest)

4.80%

ROE (Latest)

4.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.52% (YoY

NET SALES(Q)

Highest at MXN 2,074.84 MM

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 941.54

CASH AND EQV(HY)

Lowest at MXN 4,335.56 MM

INTEREST(Q)

Highest at MXN 24.69 MM

PRE-TAX PROFIT(Q)

Lowest at MXN 209.72 MM

NET PROFIT(Q)

Lowest at MXN 171.66 MM

EPS(Q)

Lowest at MXN 0.14

Here's what is working for Consorcio ARA SAB de CV

Net Sales

Highest at MXN 2,074.84 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (MXN MM)

Net Sales

At MXN 2,074.84 MM has Grown at 12.58%

over average net sales of the previous four periods of MXN 1,843.04 MM

MOJO Watch

Near term sales trend is positive

Net Sales (MXN MM)

Raw Material Cost

Fallen by -2.52% (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 MXN 29.75 MM

in the last five periods

MOJO Watch

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

Depreciation (MXN MM)

Here's what is not working for Consorcio ARA SAB de CV

Interest

At MXN 24.69 MM has Grown at 16.11%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Interest Coverage Ratio

Lowest at 941.54

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at MXN 24.69 MM

in the last five periods and Increased by 16.11% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Pre-Tax Profit

Lowest at MXN 209.72 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (MXN MM)

Net Profit

Lowest at MXN 171.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (MXN MM)

EPS

Lowest at MXN 0.14

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (MXN)

Cash and Eqv

Lowest at MXN 4,335.56 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents