Gruma SAB de CV (GRUMAB) 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

Grupo Bimbo SAB de CV

Grupo Herdez SAB de CV

Gruma SAB de CV

Accel SAB de CV

Why is Gruma SAB de CV ?

Negative results in Mar 26

ROCE(HY) Lowest at 21.96%
NET SALES(Q) Lowest at MXN 28,530.19 MM
INTEREST COVERAGE RATIO(Q) Lowest at 792.78

With ROE of 27.11%, it has a expensive valuation with a 3.16 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -10.92%, its profits have risen by 22.5% ; the PEG ratio of the company is 0.5

Below par performance in long term as well as near term

Along with generating -10.92% returns in the last 1 year, the stock has also underperformed Mexico IPC in the last 3 years, 1 year and 3 months

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 FMCG)

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

Is Gruma SAB de CV for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Gruma SAB de CV

-11.69%

-0.68

18.97%

Mexico IPC

11.57%

0.71

19.23%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.05%

EBIT Growth (5y)

10.40%

EBIT to Interest (avg)

6.21

Debt to EBITDA (avg)

1.21

Net Debt to Equity (avg)

0.53

Sales to Capital Employed (avg)

1.82

Tax Ratio

33.63%

Dividend Payout Ratio

20.35%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

25.46%

ROE (avg)

23.05%

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

3.16

EV to EBIT

8.20

EV to EBITDA

6.44

EV to Capital Employed

2.47

EV to Sales

1.16

PEG Ratio

0.52

Dividend Yield

ROCE (Latest)

30.19%

ROE (Latest)

27.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 61.35 %

-14What is not working for the Company

ROCE(HY)

Lowest at 21.96%

NET SALES(Q)

Lowest at MXN 28,530.19 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 792.78

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.36 times

OPERATING PROFIT(Q)

Lowest at MXN 4,692.31 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.45 %

PRE-TAX PROFIT(Q)

Lowest at MXN 2,710.94 MM

NET PROFIT(Q)

Lowest at MXN 1,767.29 MM

EPS(Q)

Lowest at MXN 5.09

Here's what is working for Gruma SAB de CV

Debt-Equity Ratio

Lowest at 61.35 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Depreciation

Highest at MXN 1,277.87 MM

in the last five periods

MOJO Watch

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

Depreciation (MXN MM)

Here's what is not working for Gruma SAB de CV

Net Sales

Lowest at MXN 28,530.19 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (MXN MM)

Interest Coverage Ratio

Lowest at 792.78

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At MXN 28,530.19 MM has Fallen at -6.79%

over average net sales of the previous four periods of MXN 30,608.24 MM

MOJO Watch

Near term sales trend is negative

Net Sales (MXN MM)

Operating Profit

Lowest at MXN 4,692.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (MXN MM)

Operating Profit Margin

Lowest at 16.45 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at MXN 2,710.94 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (MXN MM)

Pre-Tax Profit

At MXN 2,710.94 MM has Fallen at -26.12%

over average net sales of the previous four periods of MXN 3,669.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (MXN MM)

Net Profit

Lowest at MXN 1,767.29 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (MXN MM)

EPS

Lowest at MXN 5.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (MXN)

Inventory Turnover Ratio

Lowest at 3.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio