First Treet Manufacturing Modaraba (FTMM) 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

Pak Elektron Ltd.

Pakistan Cables Ltd.

First Treet Manufacturing Modaraba

Siemens Pakistan Engineering Co. Ltd.

Atlas Battery Ltd.

Pakistan Engineering Co. Ltd.

Johnson & Phillips (Pakistan) Ltd.

Why is First Treet Manufacturing Modaraba ?

Poor Management Efficiency with a low ROE of 2.41%

The company has been able to generate a Return on Equity (avg) of 2.41% signifying low profitability per unit of shareholders funds

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

Poor long term growth as Operating profit has grown by an annual rate 15.19% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 0 times
The company has been able to generate a Return on Equity (avg) of 2.41% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 15.19% of over the last 5 years

Flat results in Mar 25

DEBTORS TURNOVER RATIO(HY) Lowest at 4.06%
RAW MATERIAL COST(Y) Grown by 14.04% (YoY)
NET SALES(Q) Lowest at PKR 886.15

With ROE of 6.1, it has a expensive valuation with a 1.1 Price to Book Value

The stock is trading at a discount 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 19.2% ; the PEG ratio of the company is 0.9

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 Electronics & Appliances)

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

Is First Treet Manufacturing Modaraba for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

First Treet Manufacturing Modaraba

-100.0%

-0.19

60.04%

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)

-4.16%

EBIT Growth (5y)

15.47%

EBIT to Interest (avg)

25.51

Debt to EBITDA (avg)

5.28

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

1.32

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.98%

ROE (avg)

4.04%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

135

Industry P/E

Price to Book Value

5.32

EV to EBIT

131.35

EV to EBITDA

86.24

EV to Capital Employed

6.12

EV to Sales

4.07

PEG Ratio

Dividend Yield

ROCE (Latest)

4.66%

ROE (Latest)

3.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

Bullish

Bearish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

8What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.86% (YoY

CASH AND EQV(HY)

Highest at PKR 617.02 MM

NET SALES(Q)

Highest at PKR 1,097.45 MM

OPERATING PROFIT(Q)

Highest at PKR 59.61 MM

PRE-TAX PROFIT(Q)

At PKR 69.36 MM has Grown at 84.29%

NET PROFIT(Q)

Highest at PKR 68.21 MM

EPS(Q)

Highest at PKR 0.35

-9What is not working for the Company

INTEREST(HY)

At PKR 6.02 MM has Grown at 494.47%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.01 times

Here's what is working for First Treet Manufacturing Modaraba

Net Sales

Highest at PKR 1,097.45 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Operating Profit

Highest at PKR 59.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Pre-Tax Profit

At PKR 69.36 MM has Grown at 84.29%

over average net sales of the previous four periods of PKR 37.64 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit

Highest at PKR 68.21 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

Net Profit

At PKR 68.21 MM has Grown at 120.01%

over average net sales of the previous four periods of PKR 31 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 0.35

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Cash and Eqv

Highest at PKR 617.02 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.86% (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

Here's what is not working for First Treet Manufacturing Modaraba

Interest

At PKR 6.02 MM has Grown at 494.47%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Debtors Turnover Ratio

Lowest at 4.01 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio