Ecopack Ltd. (ECOP) 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

Tariq Glass Industries Ltd.

Ghani Glass Ltd.

Macpac Films Ltd.

Ecopack Ltd.

Tri-Pack Films Ltd.

Cherat Packaging Ltd.

Balochistan Glass Ltd.

Why is Ecopack Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at 0 times

Poor long term growth as Operating profit has grown by an annual rate 40.92% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 0 times
The company has been able to generate a Return on Equity (avg) of 9.55% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 4 consecutive quarters

NET PROFIT(HY) At PKR 153.31 MM has Grown at 541.13%
ROCE(HY) Highest at 28.64%
INTEREST COVERAGE RATIO(Q) Highest at 670.44

With ROE of 25.8, it has a attractive valuation with a 2.7 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 risen by 1119.7% ; the PEG ratio of the company is 0

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 Packaging)

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

Is Ecopack Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ecopack Ltd.

-100.0%

9.03

63.77%

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)

19.15%

EBIT Growth (5y)

49.64%

EBIT to Interest (avg)

2.14

Debt to EBITDA (avg)

2.33

Net Debt to Equity (avg)

0.78

Sales to Capital Employed (avg)

2.78

Tax Ratio

37.24%

Dividend Payout Ratio

28.40%

Pledged Shares

Institutional Holding

ROCE (avg)

16.83%

ROE (avg)

9.55%

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

1.77

EV to EBIT

4.50

EV to EBITDA

3.64

EV to Capital Employed

1.55

EV to Sales

0.51

PEG Ratio

0.05

Dividend Yield

3.26%

ROCE (Latest)

34.39%

ROE (Latest)

20.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

3What is working for the Company

ROCE(HY)

Highest at 23.19%

CASH AND EQV(HY)

Highest at PKR 137.27 MM

-19What is not working for the Company

PRE-TAX PROFIT(Q)

At PKR 8.42 MM has Fallen at -94.03%

INTEREST(Q)

At PKR 32.29 MM has Grown at 19.01%

INTEREST COVERAGE RATIO(Q)

Lowest at 130.03

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.68 times

NET SALES(Q)

Lowest at PKR 1,278.73 MM

OPERATING PROFIT(Q)

Lowest at PKR 41.99 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.28 %

NET PROFIT(Q)

Lowest at PKR -12.2 MM

EPS(Q)

Lowest at PKR -0.23

Here's what is working for Ecopack Ltd.

Cash and Eqv

Highest at PKR 137.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Ecopack Ltd.

Net Sales

At PKR 1,278.73 MM has Fallen at -27.54%

over average net sales of the previous four periods of PKR 1,764.75 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (PKR MM)

Pre-Tax Profit

At PKR 8.42 MM has Fallen at -94.03%

over average net sales of the previous four periods of PKR 140.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PKR MM)

Net Profit

At PKR -12.2 MM has Fallen at -112.82%

over average net sales of the previous four periods of PKR 95.18 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PKR MM)

Interest

At PKR 32.29 MM has Grown at 19.01%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Interest Coverage Ratio

Lowest at 130.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at PKR 1,278.73 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Operating Profit

Lowest at PKR 41.99 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Operating Profit Margin

Lowest at 3.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at PKR -12.2 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

EPS

Lowest at PKR -0.23

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PKR)

Inventory Turnover Ratio

Lowest at 6.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio