Gobarto SA (GOB) 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

SEKO SA

Helio SA

Atlanta Poland SA

Tarczynski SA

Eurocash SA

Kernel Holding SA

Pamapol SA

Pepees SA

Gobarto SA

Why is Gobarto SA ?

Poor Management Efficiency with a low ROCE of 6.56%

The company has been able to generate a Return on Capital Employed (avg) of 6.56% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 10.82% and Operating profit at 14.49% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.39% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.82% and Operating profit at 14.49% over the last 5 years

ROCE(HY) Lowest at 0.82%
INTEREST(Q) At PLN 7.36 MM has Grown at 10.51%
RAW MATERIAL COST(Y) Grown by 21.97% (YoY)

With ROE of 2.10%, it has a very expensive valuation with a 1.07 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 -8.40%, its profits have fallen by -79.4%

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 Retailing)

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

Is Gobarto SA for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gobarto SA

-8.4%

-1.03

46.97%

Poland WIG

27.62%

1.38

19.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.82%

EBIT Growth (5y)

14.49%

EBIT to Interest (avg)

0.79

Debt to EBITDA (avg)

4.23

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

4.22

Tax Ratio

33.27%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.56%

ROE (avg)

6.39%

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

1.07

EV to EBIT

21.83

EV to EBITDA

9.01

EV to Capital Employed

1.05

EV to Sales

0.24

PEG Ratio

Dividend Yield

ROCE (Latest)

4.81%

ROE (Latest)

2.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-23What is not working for the Company

ROCE(HY)

Lowest at 0.82%

INTEREST(Q)

At PLN 7.36 MM has Grown at 10.51%

RAW MATERIAL COST(Y)

Grown by 21.97% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 74.92 %

OPERATING PROFIT(Q)

Lowest at PLN -4.6 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.48 %

PRE-TAX PROFIT(Q)

Lowest at PLN -23.79 MM

NET PROFIT(Q)

Lowest at PLN -22.22 MM

EPS(Q)

Lowest at PLN -0.8

Here's what is working for Gobarto SA

Depreciation

Highest at PLN 16.26 MM

in the last five periods

MOJO Watch

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

Depreciation (PLN MM)

Here's what is not working for Gobarto SA

Interest

At PLN 7.36 MM has Grown at 10.51%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Pre-Tax Profit

At PLN -23.79 MM has Fallen at -90.73%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PLN MM)

Net Profit

At PLN -22.22 MM has Fallen at -73.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PLN MM)

Operating Profit

Lowest at PLN -4.6 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PLN MM)

Operating Profit Margin

Lowest at -0.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at PLN -23.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PLN MM)

Net Profit

Lowest at PLN -22.22 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PLN MM)

EPS

Lowest at PLN -0.8

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PLN)

Debt-Equity Ratio

Highest at 74.92 %

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

Raw Material Cost

Grown by 21.97% (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