Grupo Bafar SAB de CV (BAFARB) 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

Industrias Bachoco SAB de CV

Grupo Bafar SAB de CV

Grupo Bimbo SAB de CV

Gruma SAB de CV

KUO SAB de CV

Why is Grupo Bafar SAB de CV ?

Poor Management Efficiency with a low ROCE of 11.12%

The company has been able to generate a Return on Capital Employed (avg) of 11.12% signifying low profitability per unit of total capital (equity and debt)

Flat results in Jun 26

INTEREST COVERAGE RATIO(Q) Lowest at 508.49
OPERATING PROFIT(Q) Lowest at MXN 1,161.26 MM
OPERATING PROFIT MARGIN(Q) Lowest at 12.5 %

With ROE of 26.54%, it has a fair valuation with a 2.18 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 16.56%, its profits have risen by 306.8% ; the PEG ratio of the company is 0

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 Grupo Bafar SAB de CV for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Grupo Bafar SAB de CV

16.56%

-0.08

15.66%

Mexico IPC

14.41%

0.77

19.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.96%

EBIT Growth (5y)

18.80%

EBIT to Interest (avg)

4.39

Debt to EBITDA (avg)

3.80

Net Debt to Equity (avg)

1.20

Sales to Capital Employed (avg)

0.93

Tax Ratio

1.63%

Dividend Payout Ratio

10.84%

Pledged Shares

Institutional Holding

ROCE (avg)

10.86%

ROE (avg)

24.83%

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

2.18

EV to EBIT

14.36

EV to EBITDA

11.27

EV to Capital Employed

1.55

EV to Sales

1.74

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

10.82%

ROE (Latest)

26.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at MXN 4,476.08 MM

INTEREST COVERAGE RATIO(Q)

Highest at 651.46

RAW MATERIAL COST(Y)

Fallen by 0.92% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 116.89 %

NET SALES(Q)

Highest at MXN 9,288.58 MM

NET PROFIT(Q)

Highest at MXN 1,500.02 MM

-4What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 508.49

OPERATING PROFIT(Q)

Lowest at MXN 1,161.26 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.5 %

Here's what is working for Grupo Bafar SAB de CV

Interest Coverage Ratio

Highest at 651.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at MXN 4,476.08 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (MXN MM)

Net Sales

Highest at MXN 9,288.58 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (MXN MM)

Net Profit

Highest at MXN 1,500.02 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (MXN MM)

Debt-Equity Ratio

Lowest at 116.89 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.92% (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

Depreciation

Highest at MXN 326.5 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 Grupo Bafar SAB de CV

Interest Coverage Ratio

Lowest at 508.49

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at MXN 1,161.26 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (MXN MM)

Operating Profit Margin

Lowest at 12.5 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales