Crescent Fibres Ltd. (CFL) 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

Shahtaj Textile Ltd.

Allawasaya Textile & Finishing Mills Ltd.

Crescent Textile Mills Ltd.

Crescent Cotton Mills Ltd.

Image Pakistan Ltd.

Colony Textile Mills Ltd.

Crescent Fibres Ltd.

Ellcot Spinning Mills Ltd.

Sunrays Textile Mills Ltd.

Maqbool Textile Mills Ltd.

Rupali Polyester Ltd.

Why is Crescent Fibres Ltd. ?

Poor Management Efficiency with a low ROCE of 7.42%

The company has been able to generate a Return on Capital Employed (avg) of 7.42% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.73 times

Poor long term growth as Operating profit has grown by an annual rate -218.29% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.73 times
The company has been able to generate a Return on Equity (avg) of 5.66% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -218.29% of over the last 5 years

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

ROCE(HY) Lowest at -20.65%
CASH AND EQV(HY) Lowest at PKR 370.37 MM
DEBT-EQUITY RATIO (HY) Highest at 25.84 %

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 0%, its profits have fallen by -791.5%

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 Fibres Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Crescent Fibres Ltd.

-100.0%

-0.50

35.08%

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)

-8.06%

EBIT Growth (5y)

-215.21%

EBIT to Interest (avg)

1.76

Debt to EBITDA (avg)

1.73

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

1.12

Tax Ratio

8.42%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.42%

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

NA (Loss Making)

Industry P/E

Price to Book Value

0.25

EV to EBIT

-2.60

EV to EBITDA

-3.36

EV to Capital Employed

0.41

EV to Sales

0.39

PEG Ratio

Dividend Yield

ROCE (Latest)

-15.84%

ROE (Latest)

-23.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bearish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

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

6What is working for the Company

PRE-TAX PROFIT(Q)

Highest at PKR -87.55 MM

NET PROFIT(Q)

Highest at PKR -77.9 MM

EPS(Q)

Highest at PKR -6.27

-12What is not working for the Company

NET SALES(HY)

At PKR 1,602.18 MM has Grown at -33.65%

DEBT-EQUITY RATIO (HY)

Highest at 26.36 %

RAW MATERIAL COST(Y)

Grown by 3,185.71% (YoY

CASH AND EQV(HY)

Lowest at PKR 115.24 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.91 times

Here's what is working for Crescent Fibres Ltd.

Pre-Tax Profit

Highest at PKR -87.55 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit

Highest at PKR -77.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR -6.27

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Here's what is not working for Crescent Fibres Ltd.

Net Sales

At PKR 1,602.18 MM has Grown at -33.65%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (PKR MM)

Debt-Equity Ratio

Highest at 26.36 % and Grown

In each half year 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

Cash and Eqv

Lowest at PKR 115.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 2.91 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 3,185.71% (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