ScoreWhy is Consorcio ARA SAB de CV ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.17
2
Flat results in Dec 25
- INTEREST COVERAGE RATIO(Q) Lowest at 641.06
- CASH AND EQV(HY) Lowest at MXN 4,133.77 MM
- DEBT-EQUITY RATIO (HY) Highest at 3.44 %
3
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 17.02%, its profits have risen by 8.3% ; the PEG ratio of the company is 0.7
4
Majority shareholders : FIIs
5
Underperformed the market in the last 1 year
- The stock has generated a return of 17.02% in the last 1 year, much lower than market (Mexico IPC) returns of 31.40%
Real-Time Research ReportHow 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?
Low Risk, Medium Return
Absolute
Risk Adjusted
Volatility
Consorcio ARA SAB de CV
-100.0%
1.39
27.89%
Mexico IPC
31.4%
1.71
18.32%
Quality
Management Risk
Growth
Capital StructureQuality 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
0
Institutional Holding
0.01%
ROCE (avg)
4.91%
ROE (avg)
4.16%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
6
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
NA
ROCE (Latest)
4.80%
ROE (Latest)
4.57%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at MXN 216.8 MM
ROCE(HY)
Highest at 5.7%
DEBTORS TURNOVER RATIO(HY)
Highest at 7.68 times
RAW MATERIAL COST(Y)
Fallen by 0.52% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 0.45 times
NET SALES(Q)
Highest at MXN 2,327.34 MM
OPERATING PROFIT(Q)
Highest at MXN 268.13 MM
NET PROFIT(Q)
Highest at MXN 354.95 MM
EPS(Q)
Highest at MXN 0.29
-11What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 641.06
CASH AND EQV(HY)
Lowest at MXN 4,133.77 MM
DEBT-EQUITY RATIO
(HY)
Highest at 3.44 %
INTEREST(Q)
Highest at MXN 41.83 MM
Here's what is working for Consorcio ARA SAB de CV
Operating Cash Flow
Highest at MXN 216.8 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 (MXN MM)
Debtors Turnover Ratio
Highest at 7.68 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
Highest at MXN 2,327.34 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (MXN MM)
Net Sales
At MXN 2,327.34 MM has Grown at 20.73%
over average net sales of the previous four periods of MXN 1,927.66 MMMOJO Watch
Near term sales trend is positive
Net Sales (MXN MM)
Operating Profit
Highest at MXN 268.13 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (MXN MM)
Net Profit
Highest at MXN 354.95 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (MXN MM)
Net Profit
At MXN 354.95 MM has Grown at 91.86%
over average net sales of the previous four periods of MXN 185 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (MXN MM)
EPS
Highest at MXN 0.29
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (MXN)
Inventory Turnover Ratio
Highest at 0.45 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by 0.52% (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 47.78 MM
in the last five periodsMOJO 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 41.83 MM has Grown at 156.27%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (MXN MM)
Interest Coverage Ratio
Lowest at 641.06
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
Highest at MXN 41.83 MM
in the last five periods and Increased by 156.27% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (MXN MM)
Cash and Eqv
Lowest at MXN 4,133.77 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 3.44 %
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
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