Faisal Spinning Mills Ltd. (FASM) 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

Dawood Lawrencepur Ltd.

Reliance Cotton Spinning Mills Ltd.

Indus Dyeing & Manufacturing Co. Ltd.

Suraj Cotton Mills Ltd.

JK Spinning Mills Ltd.

Gadoon Textile Mills Ltd.

Faisal Spinning Mills Ltd.

Nishat Chunian Ltd.

Gul Ahmed Textile Mills Ltd.

Din Textile Mills Ltd.

Fazal Cloth Mills Ltd.

Why is Faisal Spinning Mills Ltd. ?

Poor Management Efficiency with a low ROCE of 10.68%

The company has been able to generate a Return on Capital Employed (avg) of 10.68% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at 0 times

High Debt Company with a Debt to Equity ratio (avg) at 0 times
The company has been able to generate a Return on Capital Employed (avg) of 10.68% signifying low profitability per unit of total capital (equity and debt)

High Debt company with Weak Long Term Fundamental Strength

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 0%, its profits have fallen by -134.8%

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 Garments & Apparels)

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

Is Faisal Spinning Mills Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Faisal Spinning Mills Ltd.

-100.0%

-0.05

45.38%

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)

25.39%

EBIT Growth (5y)

12.44%

EBIT to Interest (avg)

3.96

Debt to EBITDA (avg)

6.60

Net Debt to Equity (avg)

1.54

Sales to Capital Employed (avg)

1.73

Tax Ratio

31.96%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.68%

ROE (avg)

15.34%

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

0.28

EV to EBIT

22.74

EV to EBITDA

14.00

EV to Capital Employed

0.75

EV to Sales

0.51

PEG Ratio

Dividend Yield

ROCE (Latest)

3.29%

ROE (Latest)

-2.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -29.88% (YoY

OPERATING PROFIT(Q)

Highest at PKR 578.35 MM

OPERATING PROFIT MARGIN(Q)

Highest at 4.85 %

PRE-TAX PROFIT(Q)

At PKR 39.18 MM has Grown at 109.19%

NET PROFIT(Q)

At PKR 43.3 MM has Grown at 112.44%

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -4,569.62 MM

CASH AND EQV(HY)

Lowest at PKR 645.98 MM

DEBT-EQUITY RATIO (HY)

Highest at 153.6 %

Here's what is working for Faisal Spinning Mills Ltd.

Operating Profit

Highest at PKR 578.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Operating Profit Margin

Highest at 4.85 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At PKR 39.18 MM has Grown at 109.19%

over average net sales of the previous four periods of PKR -426.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit

At PKR 43.3 MM has Grown at 112.44%

over average net sales of the previous four periods of PKR -348.09 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

Raw Material Cost

Fallen by -29.88% (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

Depreciation

At PKR 221.39 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (PKR MM)

Here's what is not working for Faisal Spinning Mills Ltd.

Operating Cash Flow

Lowest at PKR -4,569.62 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Cash and Eqv

Lowest at PKR 645.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 153.6 %

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