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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Acuvi AB

Metacon AB

AQ Group AB

CTEK AB

Fagerhult Group AB

GARO AB

Ferroamp 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 -184.22% of over the last 5 years

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

NET PROFIT(9M) At SEK -42.8 MM has Grown at -145.98%
INTEREST(HY) At SEK 2.7 MM has Grown at 1,250%
OPERATING CASH FLOW(Y) Lowest at SEK 8.5 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 -24.49%, its profits have fallen by -95.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -24.49% 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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

GARO AB

-24.49%

-1.23

39.85%

OMX Stockholm 30

8.01%

0.44

18.11%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.64%

EBIT Growth (5y)

-184.22%

EBIT to Interest (avg)

28.17

Debt to EBITDA (avg)

6.42

Net Debt to Equity (avg)

0.44

Sales to Capital Employed (avg)

1.51

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

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Bearish

OBV

No Trend

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

12What is working for the Company

PRE-TAX PROFIT(Q)

At SEK -0.5 MM has Grown at 97.03%

RAW MATERIAL COST(Y)

Fallen by -40.79% (YoY

NET PROFIT(Q)

Highest at SEK 0.4 MM

EPS(Q)

Highest at SEK 0.01

-15What is not working for the Company

NET PROFIT(9M)

At SEK -42.8 MM has Grown at -145.98%

INTEREST(HY)

At SEK 2.7 MM has Grown at 1,250%

OPERATING CASH FLOW(Y)

Lowest at SEK 8.5 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.16%

CASH AND EQV(HY)

Lowest at SEK 32.6 MM

NET SALES(Q)

Lowest at SEK 264.8 MM

Here's what is working for GARO AB

Pre-Tax Profit

At SEK -0.5 MM has Grown at 97.03%

over average net sales of the previous four periods of SEK -16.83 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 0.4 MM has Grown at 102.66%

over average net sales of the previous four periods of SEK -15.05 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SEK MM)

Net Profit

Highest at SEK 0.4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SEK MM)

EPS

Highest at SEK 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SEK)

Raw Material Cost

Fallen by -40.79% (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 GARO AB

Interest

At SEK 2.7 MM has Grown at 1,250%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Operating Cash Flow

Lowest at SEK 8.5 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Inventory Turnover Ratio

Lowest at 3.16% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at SEK 264.8 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)

Cash and Eqv

Lowest at SEK 32.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents