ScoreWhy is GARO AB ?
1
Poor long term growth as Operating profit has grown by an annual rate -161.52% of over the last 5 years
2
Negative results in Jun 26
- OPERATING PROFIT(Q) Lowest at SEK -10.4 MM
- OPERATING PROFIT MARGIN(Q) Lowest at -3.82 %
- RAW MATERIAL COST(Y) Grown by 556.55% (YoY)
3
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 -42.89%, its profits have risen by 33.5%
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -42.89% 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 ReportHow 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?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
GARO AB
-44.86%
-1.50
42.20%
OMX Stockholm 30
24.18%
1.68
15.44%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.07%
EBIT Growth (5y)
-161.52%
EBIT to Interest (avg)
44.73
Debt to EBITDA (avg)
11.56
Net Debt to Equity (avg)
0.44
Sales to Capital Employed (avg)
1.42
Tax Ratio
19.55%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.76%
ROE (avg)
13.90%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
1.16
EV to EBIT
-35.68
EV to EBITDA
27.17
EV to Capital Employed
1.11
EV to Sales
0.80
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
-3.12%
ROE (Latest)
-6.69%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bullish
Dow Theory
Bearish
Bearish
OBV
No Trend
Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at SEK 53.8 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 42.5 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.28 times
NET SALES(Q)
Highest at SEK 272.3 MM
-23What is not working for the Company
OPERATING PROFIT(Q)
Lowest at SEK -10.4 MM
OPERATING PROFIT MARGIN(Q)
Lowest at -3.82 %
RAW MATERIAL COST(Y)
Grown by 556.55% (YoY
CASH AND EQV(HY)
Lowest at SEK 23.2 MM
PRE-TAX PROFIT(Q)
Lowest at SEK -25.3 MM
NET PROFIT(Q)
Lowest at SEK -20.3 MM
EPS(Q)
Lowest at SEK -0.41
Here's what is working for GARO AB
Operating Cash Flow
Highest at SEK 53.8 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (SEK MM)
Net Sales
Highest at SEK 272.3 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (SEK MM)
Debt-Equity Ratio
Lowest at 42.5 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.28 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for GARO AB
Pre-Tax Profit
At SEK -25.3 MM has Fallen at -146.83%
over average net sales of the previous four periods of SEK -10.25 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (SEK MM)
Net Profit
At SEK -20.3 MM has Fallen at -136.05%
over average net sales of the previous four periods of SEK -8.6 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (SEK MM)
Operating Profit
Lowest at SEK -10.4 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (SEK MM)
Operating Profit Margin
Lowest at -3.82 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at SEK -25.3 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (SEK MM)
Net Profit
Lowest at SEK -20.3 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (SEK MM)
EPS
Lowest at SEK -0.41
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (SEK)
Cash and Eqv
Lowest at SEK 23.2 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Raw Material Cost
Grown by 556.55% (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
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