Eden Hotel Lanka Plc (EDEN.N0000) 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

Trans Asia Hotels Plc

Aitken Spence Plc

John Keells Hotels Plc

Asian Hotels & Properties Plc

Aitken Spence Hotel Holdings Plc

Jetwing Symphony PLC

Ceylon Hotels Corp. Plc

Hunas Holdings Plc

The Kingsbury Plc

Eden Hotel Lanka Plc

Galadari Hotels (Lanka) Plc

Why is Eden Hotel Lanka Plc ?

Flat results in Dec 25

PRE-TAX PROFIT(Q) At LKR -677.15 MM has Fallen at -201.57%
NET PROFIT(Q) At LKR -462.33 MM has Fallen at -724.07%
INTEREST(Q) At LKR 864.83 MM has Grown at 40%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -30.34%, its profits have risen by 62.9%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -30.34% returns in the last 1 year, the stock has also underperformed Sri Lanka CSE All Share in each of the last 3 annual periods

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 Hotels & Resorts)

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

Is Eden Hotel Lanka Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Eden Hotel Lanka Plc

-30.34%

-0.80

31.38%

Sri Lanka CSE All Share

11.95%

0.72

16.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

64.93%

EBIT Growth (5y)

14.10%

EBIT to Interest (avg)

-0.32

Debt to EBITDA (avg)

82.69

Net Debt to Equity (avg)

0.79

Sales to Capital Employed (avg)

0.22

Tax Ratio

35.82%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

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

0.99

EV to EBIT

-537.95

EV to EBITDA

10.64

EV to Capital Employed

0.99

EV to Sales

2.03

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.18%

ROE (Latest)

-9.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 3,756.74 MM

NET PROFIT(HY)

Higher at LKR -930.85 MM

ROCE(HY)

Highest at -5.19%

CASH AND EQV(HY)

Highest at LKR 14,428.5 MM

DEBT-EQUITY RATIO (HY)

Lowest at 10.71 %

-10What is not working for the Company

PRE-TAX PROFIT(Q)

At LKR -677.15 MM has Fallen at -201.57%

NET PROFIT(Q)

At LKR -462.33 MM has Fallen at -724.07%

INTEREST(Q)

At LKR 864.83 MM has Grown at 40%

RAW MATERIAL COST(Y)

Grown by 5.77% (YoY

NET SALES(Q)

Lowest at LKR 1,870.18 MM

Here's what is working for Eden Hotel Lanka Plc

Operating Cash Flow

Highest at LKR 3,756.74 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (LKR MM)

Cash and Eqv

Highest at LKR 14,428.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 10.71 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Eden Hotel Lanka Plc

Pre-Tax Profit

At LKR -677.15 MM has Fallen at -201.57%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR -462.33 MM has Fallen at -724.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Interest

At LKR 864.83 MM has Grown at 40%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Net Sales

Lowest at LKR 1,870.18 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (LKR MM)

Raw Material Cost

Grown by 5.77% (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