Grupo Herdez SAB de CV (HERDEZ*) 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 Grupo Herdez SAB de CV ?

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at MXN 3,168.98 MM
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
CASH AND EQV(HY) Lowest at MXN 4,776.33 MM

With ROE of 46.95%, it has a expensive valuation with a 2.76 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 74.42%, its profits have risen by 4.6% ; the PEG ratio of the company is 1.3

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 Grupo Herdez SAB de CV for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Grupo Herdez SAB de CV

74.42%

1.53

42.57%

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)

10.30%

EBIT Growth (5y)

13.72%

EBIT to Interest (avg)

4.10

Debt to EBITDA (avg)

1.30

Net Debt to Equity (avg)

0.63

Sales to Capital Employed (avg)

2.18

Tax Ratio

34.86%

Dividend Payout Ratio

35.77%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

30.16%

ROE (avg)

37.14%

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

2.76

EV to EBIT

5.37

EV to EBITDA

4.37

EV to Capital Employed

1.88

EV to Sales

0.75

PEG Ratio

1.27

Dividend Yield

0.08%

ROCE (Latest)

35.05%

ROE (Latest)

46.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Bullish

OBV

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

10What is working for the Company

ROCE(HY)

Highest at 29.48%

INTEREST COVERAGE RATIO(Q)

Highest at 787.06

RAW MATERIAL COST(Y)

Fallen by -0.83% (YoY

OPERATING PROFIT(Q)

Highest at MXN 1,776.62 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.96 %

PRE-TAX PROFIT(Q)

Highest at MXN 1,543.19 MM

NET PROFIT(Q)

Highest at MXN 567.63 MM

EPS(Q)

Highest at MXN 1.76

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at MXN 3,168.98 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

CASH AND EQV(HY)

Lowest at MXN 4,776.33 MM

DEBT-EQUITY RATIO (HY)

Highest at 187.36 %

DIVIDEND PER SHARE(HY)

Lowest at MXN 6.37

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

Interest Coverage Ratio

Highest at 787.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at MXN 1,776.62 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (MXN MM)

Operating Profit Margin

Highest at 17.96 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at MXN 1,543.19 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (MXN MM)

Net Profit

Highest at MXN 567.63 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (MXN MM)

EPS

Highest at MXN 1.76

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (MXN)

Raw Material Cost

Fallen by -0.83% (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

Here's what is not working for Grupo Herdez SAB de CV

Operating Cash Flow

Lowest at MXN 3,168.98 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (MXN MM)

Cash and Eqv

Lowest at MXN 4,776.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 187.36 %

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

Dividend per share

Lowest at MXN 6.37

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (MXN)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)