Electrolux Professional AB (EPRO B) 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

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Electrolux Professional AB

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Haypp Group AB

Why is Electrolux Professional AB ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 20.41

High Debt company with Weak Long Term Fundamental Strength

OPERATING CASH FLOW(Y) Lowest at SEK 1,289 MM
NET PROFIT(9M) At SEK 478 MM has Grown at -20.47%
ROCE(HY) Lowest at 12.37%

With ROE of 13.33%, it has a expensive valuation with a 2.75 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 -33.94%, its profits have fallen by -8.7%

Majority shareholders : FIIs

Below par performance in long term as well as near term

Along with generating -33.94% 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 hold?

Overall Portfolio exposure to Electrolux Professional AB should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Electrolux Professional AB for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Electrolux Professional AB

-33.94%

-1.35

28.40%

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)

10.87%

EBIT Growth (5y)

26.93%

EBIT to Interest (avg)

20.41

Debt to EBITDA (avg)

1.24

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

1.50

Tax Ratio

27.42%

Dividend Payout Ratio

37.10%

Pledged Shares

Institutional Holding

0.08%

ROCE (avg)

13.43%

ROE (avg)

12.92%

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

2.75

EV to EBIT

16.63

EV to EBITDA

10.87

EV to Capital Employed

2.35

EV to Sales

1.38

PEG Ratio

Dividend Yield

1.57%

ROCE (Latest)

14.16%

ROE (Latest)

13.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 32.55 %

RAW MATERIAL COST(Y)

Fallen by 0.11% (YoY

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 1,289 MM

NET PROFIT(9M)

At SEK 478 MM has Grown at -20.47%

ROCE(HY)

Lowest at 12.37%

INTEREST(Q)

At SEK 57 MM has Grown at 216.67%

NET SALES(Q)

Lowest at SEK 2,793 MM

Here's what is working for Electrolux Professional AB

Debt-Equity Ratio

Lowest at 32.55 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.11% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Electrolux Professional AB

Interest

At SEK 57 MM has Grown at 216.67%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Net Profit

At SEK 478 MM has Grown at -20.47%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

Operating Cash Flow

Lowest at SEK 1,289 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Net Sales

Lowest at SEK 2,793 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)