Fauji Fertilizer Co. Ltd. (FFC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Part of MojoOne Strategy

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 Fauji Fertilizer Co. Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 35.29%

Healthy long term growth as Operating profit has grown by an annual rate 35.15%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 10.36

Positive results in Mar 25

NET SALES(HY) Higher at PKR 302,394.96 MM
ROCE(HY) Highest at 46.51%
DIVIDEND PER SHARE(HY) Highest at PKR 15.29

With ROE of 39.8, it has a very attractive valuation with a 2.1 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 0%, its profits have risen by 73.5% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 10.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fauji 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 Fauji Fertilizer Co. Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Fauji Fertilizer Co. Ltd.

160.79%

4.63

39.19%

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)

38.94%

EBIT Growth (5y)

36.34%

EBIT to Interest (avg)

10.36

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.49

Sales to Capital Employed (avg)

1.33

Tax Ratio

44.05%

Dividend Payout Ratio

61.56%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

61.70%

ROE (avg)

35.29%

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

2.57

EV to EBIT

4.63

EV to EBITDA

4.27

EV to Capital Employed

3.47

EV to Sales

1.12

PEG Ratio

0.22

Dividend Yield

5.88%

ROCE (Latest)

74.88%

ROE (Latest)

36.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

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

9What is working for the Company

NET SALES(HY)

At PKR 182,292.18 MM has Grown at 43.72%

DIVIDEND PAYOUT RATIO(Y)

Highest at 84.03%

CASH AND EQV(HY)

Highest at PKR 321,181.84 MM

DIVIDEND PER SHARE(HY)

Highest at PKR 11.97

-5What is not working for the Company

INTEREST(9M)

At PKR 7,161.33 MM has Grown at 51%

RAW MATERIAL COST(Y)

Grown by 38.54% (YoY

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

Net Sales

At PKR 182,292.18 MM has Grown at 43.72%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Cash and Eqv

Highest at PKR 321,181.84 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 11.97

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Dividend Payout Ratio

Highest at 84.03%

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 Fauji Fertilizer Co. Ltd.

Interest

At PKR 7,161.33 MM has Grown at 51%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Raw Material Cost

Grown by 38.54% (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