Drillcon AB (DRIL) 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

Kopy Goldfields AB

Drillcon AB

Sotkamo Silver AB

Auriant Mining AB

Greater Than AB

Northgold AB

Why is Drillcon AB ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -10.67% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company declared positive results in Dec'24 after very negative results in Sep'24

PRE-TAX PROFIT(Q) At SEK 8.71 MM has Grown at 451.14%
NET PROFIT(Q) At SEK 6.09 MM has Grown at 334.93%

With ROE of 2.90%, it has a fair valuation with a 1.04 Price to Book Value

Over the past year, while the stock has generated a return of -23.65%, its profits have fallen by -81.5%
At the current price, the company has a high dividend yield of 162.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -23.65% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Drillcon AB should be less than 10%
Overall Portfolio exposure to Gems, Jewellery And Watches should be less than 30%

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

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

Is Drillcon AB for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Drillcon AB

-23.65%

-0.79

45.94%

OMX Stockholm 30

10.97%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.01%

EBIT Growth (5y)

-10.67%

EBIT to Interest (avg)

0.77

Debt to EBITDA (avg)

1.65

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

1.68

Tax Ratio

19.05%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.33%

ROE (avg)

6.11%

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

1.04

EV to EBIT

22.94

EV to EBITDA

5.60

EV to Capital Employed

1.03

EV to Sales

0.56

PEG Ratio

Dividend Yield

162.76%

ROCE (Latest)

4.51%

ROE (Latest)

2.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

8What is working for the Company

PRE-TAX PROFIT(Q)

At SEK 8.71 MM has Grown at 451.14%

NET PROFIT(Q)

At SEK 6.09 MM has Grown at 334.93%

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 34.08 MM

NET PROFIT(HY)

At SEK 6.41 MM has Grown at -42.4%

ROCE(HY)

Lowest at 0.03%

RAW MATERIAL COST(Y)

Grown by 29.24% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 49.73 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.54 times

Here's what is working for Drillcon AB

Pre-Tax Profit

At SEK 8.71 MM has Grown at 451.14%

over average net sales of the previous four periods of SEK 1.58 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 6.09 MM has Grown at 334.93%

over average net sales of the previous four periods of SEK 1.4 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SEK MM)

Depreciation

Highest at SEK 8.75 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 Drillcon AB

Operating Cash Flow

Lowest at SEK 34.08 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)

Debt-Equity Ratio

Highest at 49.73 %

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

Inventory Turnover Ratio

Lowest at 4.54 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 29.24% (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