Engro Fertilizers Ltd. (EFERT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fauji Fertilizer Bin Qasim Ltd.

Fauji Fertilizer Co. Ltd.

Fatima Fertilizer Co. Ltd.

Dawood Hercules Corp. Ltd.

Agritech Ltd.

Engro Fertilizers Ltd.

Engro Corp. Ltd.

Why is Engro Fertilizers Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate 10.78% of over the last 5 years

With a fall in Operating Profit of -45.65%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 2 consecutive quarters
INTEREST(HY) At PKR 2,557.08 MM has Grown at 487.17%
OPERATING CASH FLOW(Y) Lowest at PKR -18,459.61 MM
DEBT-EQUITY RATIO (HY) Highest at 113.32 %

With ROE of 59, it has a expensive valuation with a 6.3 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 0%, its profits have fallen by -21%
At the current price, the company has a high dividend yield of 7.3

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 Chemicals & Petrochemicals)

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

Is Engro Fertilizers Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Engro Fertilizers Ltd.

-100.0%

0.64

30.43%

Pakistan KSE 100 Share

60.28%

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)

12.59%

EBIT Growth (5y)

10.76%

EBIT to Interest (avg)

17.17

Debt to EBITDA (avg)

0.20

Net Debt to Equity (avg)

1.13

Sales to Capital Employed (avg)

3.10

Tax Ratio

38.38%

Dividend Payout Ratio

101.59%

Pledged Shares

Institutional Holding

0.28%

ROCE (avg)

84.24%

ROE (avg)

49.75%

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

6.89

EV to EBIT

7.56

EV to EBITDA

7.00

EV to Capital Employed

3.25

EV to Sales

1.64

PEG Ratio

Dividend Yield

4.90%

ROCE (Latest)

43.02%

ROE (Latest)

57.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

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

6What is working for the Company

PRE-TAX PROFIT(Q)

At PKR 9,221.8 MM has Grown at 260.33%

NET PROFIT(Q)

At PKR 5,565.33 MM has Grown at 234.09%

RAW MATERIAL COST(Y)

Fallen by -77.95% (YoY

DIVIDEND PER SHARE(HY)

Highest at PKR 9.79

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR 3,392.87 MM

NET SALES(HY)

At PKR 80,689.5 MM has Grown at -28.72%

CASH AND EQV(HY)

Lowest at PKR 12,724.15 MM

DEBT-EQUITY RATIO (HY)

Highest at 123.22 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.89%

INTEREST(Q)

Highest at PKR 1,768.74 MM

Here's what is working for Engro Fertilizers Ltd.

Pre-Tax Profit

At PKR 9,221.8 MM has Grown at 260.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (PKR MM)

Net Profit

At PKR 5,565.33 MM has Grown at 234.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PKR MM)

Dividend per share

Highest at PKR 9.79

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Raw Material Cost

Fallen by -77.95% (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 Engro Fertilizers Ltd.

Interest

At PKR 1,768.74 MM has Grown at 62.26%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Net Sales

At PKR 80,689.5 MM has Grown at -28.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Operating Cash Flow

Lowest at PKR 3,392.87 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Interest

Highest at PKR 1,768.74 MM

in the last five periods and Increased by 62.26% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Cash and Eqv

Lowest at PKR 12,724.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 123.22 %

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 3.89%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio