Fatima Fertilizer Co. Ltd. (FATIMA) 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 Fatima Fertilizer Co. Ltd. ?

High Management Efficiency with a high ROE of 18.77%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 12.32

Healthy long term growth as Net Sales has grown by an annual rate of 26.92%

Negative results in Mar 25

INTEREST(HY) At PKR 4,392.01 MM has Grown at 134.35%
OPERATING CASH FLOW(Y) Lowest at PKR 13,780.24 MM
INTEREST COVERAGE RATIO(Q) Lowest at 912.03

With ROE of 24.4, it has a attractive valuation with a 1.2 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 risen by 29.7% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 8.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fatima Fertilizer Co. Ltd. should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Fatima Fertilizer Co. Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Fatima Fertilizer Co. Ltd.

-100.0%

2.36

35.11%

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)

30.41%

EBIT Growth (5y)

24.66%

EBIT to Interest (avg)

12.32

Debt to EBITDA (avg)

0.16

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

1.46

Tax Ratio

39.47%

Dividend Payout Ratio

40.39%

Pledged Shares

Institutional Holding

ROCE (avg)

35.73%

ROE (avg)

18.77%

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

1.96

EV to EBIT

4.57

EV to EBITDA

3.85

EV to Capital Employed

2.00

EV to Sales

1.10

PEG Ratio

0.41

Dividend Yield

5.47%

ROCE (Latest)

43.91%

ROE (Latest)

26.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

No Trend

OBV

Mildly Bearish

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

3What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 17.22%

CASH AND EQV(HY)

Highest at PKR 113,383.7 MM

-11What is not working for the Company

INTEREST(HY)

At PKR 4,392.01 MM has Grown at 134.35%

OPERATING CASH FLOW(Y)

Lowest at PKR 13,780.24 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 912.03

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.11%

NET SALES(Q)

Fallen at -21.32%

Here's what is working for Fatima Fertilizer Co. Ltd.

Debtors Turnover Ratio

Highest at 17.22% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Cash and Eqv

Highest at PKR 113,383.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at PKR 2,968.3 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (PKR MM)

Here's what is not working for Fatima Fertilizer Co. Ltd.

Interest

At PKR 4,392.01 MM has Grown at 134.35%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Interest Coverage Ratio

Lowest at 912.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at PKR 13,780.24 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Net Sales

Fallen at -21.32%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Inventory Turnover Ratio

Lowest at 2.11%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio