Exco Technologies Ltd. (XTC) 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

Magna International, Inc.

Exco Technologies Ltd.

Kelso Technologies, Inc.

Linamar Corp.

Sparta Capital Ltd.

Martinrea International, Inc.

Velan, Inc.

Aether Catalyst Solutions, Inc.

TUGA Innovations, Inc.

ABC Technologies Holdings, Inc.

Why is Exco Technologies Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 15.73

Poor long term growth as Net Sales has grown by an annual rate of 7.42% and Operating profit at 7.07% over the last 5 years

The company has declared negative results in Dec'2024 after 2 consecutive positive quarters

NET PROFIT(HY) At CAD 11.82 MM has Grown at -27.23%
ROCE(HY) Lowest at 6.13%
RAW MATERIAL COST(Y) Grown by 12.14% (YoY)

With ROE of 6.01%, it has a very attractive valuation with a 0.65 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -15.62%, its profits have fallen by -23.5%

Majority shareholders : FIIs

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -15.62% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Exco Technologies Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Exco Technologies Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Exco Technologies Ltd.

-18.21%

0.62

24.25%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.42%

EBIT Growth (5y)

7.07%

EBIT to Interest (avg)

15.73

Debt to EBITDA (avg)

0.76

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

1.28

Tax Ratio

30.05%

Dividend Payout Ratio

54.95%

Pledged Shares

Institutional Holding

2.30%

ROCE (avg)

9.16%

ROE (avg)

6.97%

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

0.65

EV to EBIT

8.77

EV to EBITDA

4.56

EV to Capital Employed

0.70

EV to Sales

0.53

PEG Ratio

Dividend Yield

ROCE (Latest)

8.00%

ROE (Latest)

6.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 67.56 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 74.57%

DEBT-EQUITY RATIO (HY)

Lowest at 19.84 %

-14What is not working for the Company

NET PROFIT(HY)

At CAD 11.82 MM has Grown at -27.23%

ROCE(HY)

Lowest at 6.13%

RAW MATERIAL COST(Y)

Grown by 12.14% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.15%

OPERATING PROFIT(Q)

Lowest at CAD 14.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.43 %

PRE-TAX PROFIT(Q)

Lowest at CAD 4.76 MM

Here's what is working for Exco Technologies Ltd.

Operating Cash Flow

Highest at CAD 67.56 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 (CAD MM)

Debt-Equity Ratio

Lowest at 19.84 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 74.57%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Exco Technologies Ltd.

Pre-Tax Profit

At CAD 4.76 MM has Fallen at -49.88%

over average net sales of the previous four periods of CAD 9.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 11.82 MM has Grown at -27.23%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Operating Profit

Lowest at CAD 14.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 9.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD 4.76 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Debtors Turnover Ratio

Lowest at 5.15%

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 12.14% (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