CTT Systems AB (CTT) 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

AVTECH Sweden AB

Saab AB

Cavotec SA

CTT Systems AB

AAC Clyde Space AB

Why is CTT Systems AB ?

Poor long term growth as Net Sales has grown by an annual rate of 5.66% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

NET PROFIT(HY) At SEK 12.3 MM has Grown at -55.76%
OPERATING CASH FLOW(Y) Lowest at SEK 22.4 MM
ROCE(HY) Lowest at 14.78%

With ROE of 14.73%, it has a expensive valuation with a 6.38 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 -39.35%, its profits have fallen by -54.8%

Below par performance in long term as well as near term

Along with generating -39.35% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in the last 3 years, 1 year and 3 months

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 Aerospace & Defense)

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

Is CTT Systems AB for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

CTT Systems AB

-39.35%

-1.41

45.54%

OMX Stockholm 30

30.13%

1.89

15.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.66%

EBIT Growth (5y)

10.29%

EBIT to Interest (avg)

14.31

Debt to EBITDA (avg)

0.44

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

0.92

Tax Ratio

20.61%

Dividend Payout Ratio

77.92%

Pledged Shares

Institutional Holding

ROCE (avg)

26.82%

ROE (avg)

18.67%

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

6.38

EV to EBIT

30.55

EV to EBITDA

27.32

EV to Capital Employed

6.20

EV to Sales

6.36

PEG Ratio

Dividend Yield

4.01%

ROCE (Latest)

20.30%

ROE (Latest)

14.73%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

2What is working for the Company

PRE-TAX PROFIT(Q)

At SEK 8.4 MM has Grown at 78.72%

NET PROFIT(Q)

At SEK 6.7 MM has Grown at 81.08%

-21What is not working for the Company

NET PROFIT(HY)

At SEK 12.3 MM has Grown at -55.76%

OPERATING CASH FLOW(Y)

Lowest at SEK 22.4 MM

ROCE(HY)

Lowest at 14.78%

INTEREST COVERAGE RATIO(Q)

Lowest at 685.71

RAW MATERIAL COST(Y)

Grown by 20.59% (YoY

CASH AND EQV(HY)

Lowest at SEK 42.2 MM

DEBT-EQUITY RATIO (HY)

Highest at 7.74 %

INTEREST(Q)

Highest at SEK 1.4 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.52 %

Here's what is working for CTT Systems AB

Pre-Tax Profit

At SEK 8.4 MM has Grown at 78.72%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 6.7 MM has Grown at 81.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SEK MM)

Depreciation

Highest at SEK 1.8 MM

in the last five periods

MOJO Watch

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

Depreciation (SEK MM)

Here's what is not working for CTT Systems AB

Operating Cash Flow

Lowest at SEK 22.4 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Interest

At SEK 1.4 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Interest Coverage Ratio

Lowest at 685.71

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at SEK 1.4 MM

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

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Operating Profit Margin

Lowest at 14.52 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at SEK 42.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 7.74 %

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

Raw Material Cost

Grown by 20.59% (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