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

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.

11.5%

0.64

30.43%

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)

-0.96%

EBIT Growth (5y)

-5.00%

EBIT to Interest (avg)

17.17

Debt to EBITDA (avg)

0.20

Net Debt to Equity (avg)

1.13

Sales to Capital Employed (avg)

3.05

Tax Ratio

38.38%

Dividend Payout Ratio

88.52%

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

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

2What is working for the Company

NET SALES(Q)

Highest at PKR 101,676.88 MM

-10What is not working for the Company

ROCE(HY)

Lowest at 49.08%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 63.9%

RAW MATERIAL COST(Y)

Grown by 21.27% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.77 times

DIVIDEND PER SHARE(HY)

Lowest at PKR 8.77

INTEREST(Q)

Highest at PKR 2,049.85 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.01 %

Here's what is working for Engro Fertilizers Ltd.

Net Sales

Highest at PKR 101,676.88 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Here's what is not working for Engro Fertilizers Ltd.

Interest

At PKR 2,049.85 MM has Grown at 62.42%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Interest

Highest at PKR 2,049.85 MM

in the last five periods and Increased by 62.42% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Operating Profit Margin

Lowest at 19.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 8.77 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at PKR 8.77

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (PKR)

Dividend Payout Ratio

Lowest at 63.9%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 21.27% (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