Frieslandcampina Engro Pakistan Ltd. (FCEPL) 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

At-Tahur Ltd.

Al-Abbas Sugar Mills Ltd.

JDW Sugar Mills Ltd.

Habib Sugar Mills Ltd.

Frieslandcampina Engro Pakistan Ltd.

Unity Foods Ltd.

Nestlé Pakistan Ltd.

Tandlianwala Sugar Mills Ltd.

Fauji Foods Ltd.

Shakarganj Ltd.

Why is Frieslandcampina Engro Pakistan Ltd. ?

High Management Efficiency with a high ROE of 14.04%

Healthy long term growth as Operating profit has grown by an annual rate 122.96%

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at PKR 6,320.45 MM
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost
RAW MATERIAL COST(Y) Fallen by -14.7% (YoY)

With ROE of 15, it has a attractive valuation with a 4.7 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 121.7% ; the PEG ratio of the company is 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Frieslandcampina Engro Pakistan Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Frieslandcampina Engro Pakistan Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Frieslandcampina Engro Pakistan Ltd.

-100.0%

0.66

51.54%

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)

18.79%

EBIT Growth (5y)

48.54%

EBIT to Interest (avg)

2.47

Debt to EBITDA (avg)

1.02

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

4.63

Tax Ratio

38.81%

Dividend Payout Ratio

99.72%

Pledged Shares

Institutional Holding

0.84%

ROCE (avg)

22.03%

ROE (avg)

14.04%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.16

EV to EBIT

9.41

EV to EBITDA

7.31

EV to Capital Employed

3.05

EV to Sales

0.70

PEG Ratio

0.49

Dividend Yield

3.30%

ROCE (Latest)

32.43%

ROE (Latest)

14.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

13What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,220.71

ROCE(HY)

Highest at 16.1%

NET PROFIT(Q)

At PKR 600 MM has Grown at 225.06%

RAW MATERIAL COST(Y)

Fallen by -12% (YoY

CASH AND EQV(HY)

Highest at PKR 7,372.27 MM

DEBT-EQUITY RATIO (HY)

Lowest at 11.64 %

DEBTORS TURNOVER RATIO(HY)

Highest at 13.63 times

DIVIDEND PER SHARE(HY)

Highest at PKR 13.63

PRE-TAX PROFIT(Q)

At PKR 892.71 MM has Grown at 153.3%

-3What is not working for the Company

NET SALES(Q)

Lowest at PKR 24,220.23 MM

OPERATING PROFIT(Q)

Lowest at PKR 1,050.63 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.34 %

Here's what is working for Frieslandcampina Engro Pakistan Ltd.

Interest Coverage Ratio

Highest at 1,220.71 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At PKR 600 MM has Grown at 225.06%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PKR MM)

Pre-Tax Profit

At PKR 892.71 MM has Grown at 153.3%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Cash and Eqv

Highest at PKR 7,372.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 11.64 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 13.63 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at PKR 13.63

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Raw Material Cost

Fallen by -12% (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 Frieslandcampina Engro Pakistan Ltd.

Net Sales

Lowest at PKR 24,220.23 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Operating Profit

Lowest at PKR 1,050.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Operating Profit Margin

Lowest at 4.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales