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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Fauji Fertilizer Bin Qasim Ltd.

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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.

79.41%

2.36

35.11%

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)

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

Bullish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

8What is working for the Company

ROCE(HY)

Highest at 29.6%

DEBTORS TURNOVER RATIO(HY)

Highest at 26.33 times

DIVIDEND PAYOUT RATIO(Y)

Highest at 61.37%

RAW MATERIAL COST(Y)

Fallen by -4.95% (YoY

CASH AND EQV(HY)

Highest at PKR 154,373.33 MM

DIVIDEND PER SHARE(HY)

Highest at PKR 26.33

-7What is not working for the Company

INTEREST(HY)

At PKR 4,004.73 MM has Grown at 126.24%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.78 times

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

Debtors Turnover Ratio

Highest at 26.33 times 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 154,373.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at PKR 26.33

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Dividend Payout Ratio

Highest at 61.37%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -4.95% (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

Highest at PKR 3,008.19 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 4,004.73 MM has Grown at 126.24%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Inventory Turnover Ratio

Lowest at 1.78 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at PKR 0.29 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income