GARO AB (GARO) 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

CTEK AB

Acuvi AB

AQ Group AB

Metacon AB

Ferroamp AB

Fagerhult Group AB

GARO AB

Heliospectra AB

NFO Drives AB

Alelion Energy Systems AB

Nilar International AB

Why is GARO AB ?

Poor long term growth as Operating profit has grown by an annual rate -161.52% of over the last 5 years

The company has declared Negative results for the last 11 consecutive quarters

PRE-TAX PROFIT(Q) At SEK -6.8 MM has Fallen at -87.59%
RAW MATERIAL COST(Y) Grown by 13,350% (YoY)
CASH AND EQV(HY) Lowest at SEK 28.4 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -42.21%, its profits have fallen by -95.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -42.21% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in each of the last 3 annual periods

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 GARO AB for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

GARO AB

-100.0%

-1.74

35.89%

OMX Stockholm 30

10.0%

0.54

18.55%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.07%

EBIT Growth (5y)

-161.52%

EBIT to Interest (avg)

28.17

Debt to EBITDA (avg)

6.42

Net Debt to Equity (avg)

0.44

Sales to Capital Employed (avg)

1.46

Tax Ratio

15.11%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

17.25%

ROE (avg)

13.90%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.55

EV to EBIT

-24.41

EV to EBITDA

106.83

EV to Capital Employed

1.38

EV to Sales

0.99

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.66%

ROE (Latest)

-9.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Bearish

OBV

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 57.9 MM

NET PROFIT(HY)

Higher at SEK -8.9 MM

-8What is not working for the Company

PRE-TAX PROFIT(Q)

At SEK -6.8 MM has Fallen at -87.59%

RAW MATERIAL COST(Y)

Grown by 13,350% (YoY

CASH AND EQV(HY)

Lowest at SEK 28.4 MM

OPERATING PROFIT(Q)

Lowest at SEK 9.3 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.56 %

NET PROFIT(Q)

At SEK -4.4 MM has Fallen at -25.71%

Here's what is working for GARO AB

Operating Cash Flow

Highest at SEK 57.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SEK MM)

Here's what is not working for GARO AB

Pre-Tax Profit

At SEK -6.8 MM has Fallen at -87.59%

over average net sales of the previous four periods of SEK -3.63 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Operating Profit

Lowest at SEK 9.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at 3.56 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At SEK -4.4 MM has Fallen at -25.71%

over average net sales of the previous four periods of SEK -3.5 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

Cash and Eqv

Lowest at SEK 28.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 13,350% (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