Crescent Cotton Mills Ltd. (CCM) 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

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Ellcot Spinning Mills Ltd.

Sunrays Textile Mills Ltd.

Maqbool Textile Mills Ltd.

Why is Crescent Cotton Mills Ltd. ?

Poor Management Efficiency with a low ROCE of 9.37%

The company has been able to generate a Return on Capital Employed (avg) of 9.37% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -0.79% over the last 5 years

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

PRE-TAX PROFIT(Q) At PKR 7.4 has Fallen at -89.66%
NET PROFIT(Q) At PKR 20.29 MM has Fallen at -73.4%
RAW MATERIAL COST(Y) Grown by 74.09% (YoY)

With ROE of 0.7, it has a expensive valuation with a 0.2 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 0%, its profits have fallen by -89.3%

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 Garments & Apparels)

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

Is Crescent Cotton Mills Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Crescent Cotton Mills Ltd.

-50.09%

-1.03

45.27%

Pakistan KSE 100 Share

26.26%

2.81

22.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.31%

EBIT Growth (5y)

-171.37%

EBIT to Interest (avg)

5.27

Debt to EBITDA (avg)

2.07

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.87

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.37%

ROE (avg)

10.71%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.19

EV to EBIT

-173.23

EV to EBITDA

51.01

EV to Capital Employed

0.21

EV to Sales

0.23

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.12%

ROE (Latest)

-0.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

12What is working for the Company

NET PROFIT(Q)

At PKR 18.39 MM has Grown at 3,287.75%

DEBT-EQUITY RATIO (HY)

Lowest at 2.08 %

RAW MATERIAL COST(Y)

Fallen by -32.17% (YoY

CASH AND EQV(HY)

Highest at PKR 1,625.08 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 8.22 times

PRE-TAX PROFIT(Q)

Highest at PKR 19.59 MM

-17What is not working for the Company

NET PROFIT(HY)

At PKR -30.49 MM has Grown at -294.34%

OPERATING CASH FLOW(Y)

Lowest at PKR -289.22 MM

ROCE(HY)

Lowest at 0.1%

NET SALES(Q)

At PKR 1,143.84 MM has Fallen at -23.6%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.01 times

Here's what is working for Crescent Cotton Mills Ltd.

Pre-Tax Profit

At PKR 19.59 MM has Grown at 1,748.57%

over average net sales of the previous four periods of PKR -1.19 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (PKR MM)

Net Profit

At PKR 18.39 MM has Grown at 3,287.75%

over average net sales of the previous four periods of PKR 0.54 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PKR MM)

Debt-Equity Ratio

Lowest at 2.08 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Pre-Tax Profit

Highest at PKR 19.59 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Cash and Eqv

Highest at PKR 1,625.08 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 8.22 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -32.17% (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

Here's what is not working for Crescent Cotton Mills Ltd.

Net Sales

At PKR 1,143.84 MM has Fallen at -23.6%

over average net sales of the previous four periods of PKR 1,497.17 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (PKR MM)

Operating Cash Flow

Lowest at PKR -289.22 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Debtors Turnover Ratio

Lowest at 4.01 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio