Fecto Cement Ltd. (FECTC) 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

Kohinoor Textile Mills Ltd.

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Thatta Cement Co. Ltd.

Flying Cement Co. Ltd.

Attock Cement Pakistan Ltd.

Fecto Cement Ltd.

Dandot Cement Co. Ltd.

Dewan Cement Ltd.

Why is Fecto Cement Ltd. ?

Poor Management Efficiency with a low ROCE of 7.99%

The company has been able to generate a Return on Capital Employed (avg) of 7.99% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.59 times

Poor long term growth as Operating profit has grown by an annual rate 28.60% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.59 times
The company has been able to generate a Return on Equity (avg) of 4.74% signifying low profitability per unit of shareholders funds

The company has declared Positive results for the last 7 consecutive quarters

OPERATING CASH FLOW(Y) Highest at PKR 1,019.44 MM
NET PROFIT(HY) At PKR 269.91 MM has Grown at 123.79%
ROCE(HY) Highest at 15.3%

With ROE of 14.3, it has a attractive valuation with a 0.8 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 227.8% ; the PEG ratio of the company is 0

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 Building Products)

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

Is Fecto Cement Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Fecto Cement Ltd.

-100.0%

1.86

63.39%

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)

25.41%

EBIT Growth (5y)

25.58%

EBIT to Interest (avg)

0.92

Debt to EBITDA (avg)

2.59

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

1.87

Tax Ratio

43.14%

Dividend Payout Ratio

16.48%

Pledged Shares

Institutional Holding

ROCE (avg)

7.99%

ROE (avg)

4.74%

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

1.15

EV to EBIT

5.01

EV to EBITDA

4.50

EV to Capital Employed

1.13

EV to Sales

0.55

PEG Ratio

0.12

Dividend Yield

1.92%

ROCE (Latest)

22.51%

ROE (Latest)

13.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly 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

7What is working for the Company

ROCE(HY)

Highest at 15.51%

CASH AND EQV(HY)

Highest at PKR 1,233.37 MM

NET PROFIT(Q)

Highest at PKR 382.39 MM

EPS(Q)

Highest at PKR 7.62

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -68.4 MM

RAW MATERIAL COST(Y)

Grown by 68.55% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 19.08 times

OPERATING PROFIT MARGIN(Q)

Lowest at 2.38 %

Here's what is working for Fecto Cement Ltd.

Net Profit

Highest at PKR 382.39 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

Net Profit

At PKR 382.39 MM has Grown at 170.02%

over average net sales of the previous four periods of PKR 141.61 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 7.62

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Cash and Eqv

Highest at PKR 1,233.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Fecto Cement Ltd.

Operating Cash Flow

Lowest at PKR -68.4 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Operating Profit Margin

Lowest at 2.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 19.08 times

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 68.55% (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