Dekpol SA (DEK) 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

TORPOL SA

Polimex-Mostostal SA

Stalexport Autostrady SA

Trakcja SA

Dekpol SA

Budimex SA

Mirbud SA

ONDE SA

Mostostal Zabrze SA

Poznanska Korporacja Budowlana Pekabex SA

ERBUD SA

Why is Dekpol SA ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 9.01% of over the last 5 years
The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate 9.01% of over the last 5 years

ROCE(HY) Lowest at 12.86%
RAW MATERIAL COST(Y) Grown by 25.45% (YoY)
NET SALES(Q) Lowest at PLN 263.65 MM

With ROE of 11.07%, it has a attractive valuation with a 0.80 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -3.66%, its profits have fallen by -13.5%

Below par performance in long term as well as near term

Along with generating -3.66% returns in the last 1 year, the stock has also underperformed Poland WIG in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dekpol SA should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Dekpol SA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dekpol SA

-3.42%

0.57

34.74%

Poland WIG

37.09%

2.22

16.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.45%

EBIT Growth (5y)

9.01%

EBIT to Interest (avg)

4.77

Debt to EBITDA (avg)

0.63

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

1.53

Tax Ratio

26.81%

Dividend Payout Ratio

29.95%

Pledged Shares

Institutional Holding

ROCE (avg)

20.67%

ROE (avg)

17.28%

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

0.80

EV to EBIT

4.57

EV to EBITDA

4.04

EV to Capital Employed

0.81

EV to Sales

0.34

PEG Ratio

Dividend Yield

10.64%

ROCE (Latest)

17.81%

ROE (Latest)

11.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN 88.99 MM

CASH AND EQV(HY)

Highest at PLN 993.85 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.31 times

-10What is not working for the Company

ROCE(HY)

Lowest at 12.86%

RAW MATERIAL COST(Y)

Grown by 25.45% (YoY

NET SALES(Q)

Lowest at PLN 263.65 MM

OPERATING PROFIT(Q)

Lowest at PLN 20.52 MM

PRE-TAX PROFIT(Q)

Lowest at PLN 13.68 MM

NET PROFIT(Q)

Lowest at PLN 9.55 MM

Here's what is working for Dekpol SA

Operating Cash Flow

Highest at PLN 88.99 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PLN MM)

Cash and Eqv

Highest at PLN 993.85 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 5.31 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Dekpol SA

Net Sales

Lowest at PLN 263.65 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PLN MM)

Net Sales

Fallen at -23.13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (PLN MM)

Operating Profit

Lowest at PLN 20.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PLN MM)

Pre-Tax Profit

Lowest at PLN 13.68 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PLN MM)

Pre-Tax Profit

Fallen at -62.52%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PLN MM)

Net Profit

Lowest at PLN 9.55 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PLN MM)

Net Profit

Fallen at -66.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PLN MM)

Raw Material Cost

Grown by 25.45% (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