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 Herdez SAB de CV

Accel SAB de CV

Gruma SAB de CV

Grupo Bimbo SAB de CV

Why is Gruma SAB de CV ?

The company has declared negative results in Mar'2025 after 3 consecutive positive quarters

DEBTORS TURNOVER RATIO(HY) Lowest at 9.08 times
NET SALES(Q) Lowest at MXN 29,096.83 MM
OPERATING PROFIT(Q) Lowest at MXN 5,057.63 MM

With ROE of 27.40%, it has a fair valuation with a 3.03 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 -13.56%, its profits have risen by 28.9% ; the PEG ratio of the company is 0.4

Below par performance in long term as well as near term

Along with generating -13.56% 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

-13.56%

-0.33

21.32%

Mexico IPC

31.4%

1.71

18.32%

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)

1.88

Tax Ratio

33.63%

Dividend Payout Ratio

18.84%

Pledged Shares

Institutional Holding

0.01%

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

3.03

EV to EBIT

7.98

EV to EBITDA

6.28

EV to Capital Employed

2.31

EV to Sales

1.13

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

28.92%

ROE (Latest)

27.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

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

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 63.86 %

DIVIDEND PER SHARE(HY)

Highest at MXN 9.08

-8What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.08 times

NET SALES(Q)

Lowest at MXN 29,096.83 MM

OPERATING PROFIT(Q)

Lowest at MXN 5,057.63 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 17.38 %

PRE-TAX PROFIT(Q)

Lowest at MXN 3,239.05 MM

NET PROFIT(Q)

Lowest at MXN 2,315.94 MM

EPS(Q)

Lowest at MXN 6.59

Here's what is working for Gruma SAB de CV

Debt-Equity Ratio

Lowest at 63.86 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Dividend per share

Highest at MXN 9.08

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (MXN)

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

Net Sales

Lowest at MXN 29,096.83 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (MXN MM)

Net Sales

At MXN 29,096.83 MM has Fallen at -6.58%

over average net sales of the previous four periods of MXN 31,147.76 MM

MOJO Watch

Near term sales trend is negative

Net Sales (MXN MM)

Operating Profit

Lowest at MXN 5,057.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (MXN MM)

Operating Profit Margin

Lowest at 17.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at MXN 3,239.05 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (MXN MM)

Net Profit

Lowest at MXN 2,315.94 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (MXN MM)

EPS

Lowest at MXN 6.59

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (MXN)

Debtors Turnover Ratio

Lowest at 9.08 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio