Garofalo Health Care SpA (GHC) 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

Garofalo Health Care SpA

Eukedos SpA

Why is Garofalo Health Care SpA ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 8.30%

Negative results in Dec 23

ROCE(HY) Lowest at 7.2%
INTEREST COVERAGE RATIO(Q) Lowest at 413.05
RAW MATERIAL COST(Y) Grown by 13.08% (YoY)

With ROE of 7.58%, it has a Very Expensive valuation with a 1.40 Price to Book Value

Over the past year, while the stock has generated a return of -12.40%, its profits have fallen by 0%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.40% returns in the last 1 year, the stock has also underperformed Italy FTSE MIB 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 Hospital)

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

Is Garofalo Health Care SpA for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Garofalo Health Care SpA

-12.4%

-0.73

26.01%

Italy FTSE MIB

16.45%

0.84

19.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.13%

EBIT Growth (5y)

2.03%

EBIT to Interest (avg)

7.29

Debt to EBITDA (avg)

2.49

Net Debt to Equity (avg)

0.64

Sales to Capital Employed (avg)

0.73

Tax Ratio

28.02%

Dividend Payout Ratio

35.06%

Pledged Shares

Institutional Holding

ROCE (avg)

8.30%

ROE (avg)

9.17%

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

1.40

EV to EBIT

16.10

EV to EBITDA

10.51

EV to Capital Employed

1.26

EV to Sales

1.80

PEG Ratio

Dividend Yield

ROCE (Latest)

7.84%

ROE (Latest)

7.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

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

Not enough Data to analyse Financial Trend

Here's what is working for Garofalo Health Care SpA

Operating Cash Flow

Highest at EUR 94.16 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (EUR MM)

Depreciation

Highest at EUR 11.48 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (EUR MM)

Depreciation

At EUR 11.48 MM has Grown at 15.28%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (EUR MM)

Here's what is not working for Garofalo Health Care SpA

Interest Coverage Ratio

Lowest at 413.05

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at EUR 6.12 MM

in the last five periods and Increased by 31.31% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (EUR MM)

Operating Profit Margin

Lowest at 14.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at EUR 11.17 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (EUR MM)

Net Profit

Lowest at EUR 7.34 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (EUR MM)

EPS

Lowest at EUR 0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (EUR)

Cash and Eqv

Lowest at EUR 23.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 68.56 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 3.64 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 13.08% (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

Non Operating Income

Highest at EUR 0.47 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income