Ernest Borel Holdings Ltd. (1856) 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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Why is Ernest Borel Holdings Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 0%

Poor long term growth as Net Sales has grown by an annual rate of -4.75% over the last 5 years
The company is Net-Debt Free

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

OPERATING CASH FLOW(Y) Lowest at HKD -51.87 MM
ROCE(HY) Lowest at -65.36%
DEBT-EQUITY RATIO (HY) Highest at 576.36 %

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 34.88%, its profits have fallen by -113.2%

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 Gems, Jewellery And Watches)

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

Is Ernest Borel Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ernest Borel Holdings Ltd.

-100.0%

-0.22

49.10%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.75%

EBIT Growth (5y)

-198.03%

EBIT to Interest (avg)

-2.67

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

2.95

Sales to Capital Employed (avg)

0.30

Tax Ratio

0.73%

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

7.21

EV to EBIT

-11.48

EV to EBITDA

-16.94

EV to Capital Employed

2.37

EV to Sales

10.39

PEG Ratio

Dividend Yield

ROCE (Latest)

-20.63%

ROE (Latest)

-114.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

3What is working for the Company

NET PROFIT(HY)

Higher at HKD -53.45 MM

CASH AND EQV(HY)

Highest at HKD 44.19 MM

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD -51.87 MM

ROCE(HY)

Lowest at -65.36%

DEBT-EQUITY RATIO (HY)

Highest at 576.36 %

RAW MATERIAL COST(Y)

Grown by 116.15% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.63 times

NET SALES(Q)

Fallen at -30.18%

INTEREST(Q)

Highest at HKD 5.58 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -78.13 %

Here's what is working for Ernest Borel Holdings Ltd.

Net Profit

Higher at HKD -53.45 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (HKD MM)

Cash and Eqv

Highest at HKD 44.19 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 Ernest Borel Holdings Ltd.

Debt-Equity Ratio

Highest at 576.36 % and Grown

In each half year 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

Operating Cash Flow

Lowest at HKD -51.87 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Net Sales

Fallen at -30.18%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Interest

Highest at HKD 5.58 MM

in the last five periods and Increased by 23.79% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Operating Profit Margin

Lowest at -78.13 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 0.63 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 116.15% (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