Grupo México S.A.B. de C.V. (GMEXICOB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Minera Frisco SAB de CV

Grupo México S.A.B. de C.V.

Compañia Minera Autlan SA de CV

Why is Grupo México S.A.B. de C.V. ?

High Management Efficiency with a high ROCE of 32.73%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 11.52

Strong Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 32.73%

The company has declared Positive results for the last 4 consecutive quarters

NET SALES(HY) At MXN 168,290.66 MM has Grown at 19.85%
INVENTORY TURNOVER RATIO(HY) Highest at 6.57%
RAW MATERIAL COST(Y) Fallen by -2.63% (YoY)

With ROE of 21.39%, it has a expensive valuation with a 2.88 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 60.67%, its profits have risen by 24.6% ; the PEG ratio of the company is 0.6

Market Beating performance in long term as well as near term

Along with generating 60.67% returns in the last 1 year, the stock has outperformed Mexico IPC in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Grupo México S.A.B. de C.V. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Minerals & Mining)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Grupo México S.A.B. de C.V. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Grupo México S.A.B. de C.V.

-100.0%

189.92

33.51%

Mexico IPC

25.36%

1.61

16.27%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.66%

EBIT Growth (5y)

12.73%

EBIT to Interest (avg)

11.52

Debt to EBITDA (avg)

0.29

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.53

Tax Ratio

38.74%

Dividend Payout Ratio

52.75%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

32.73%

ROE (avg)

24.11%

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

2.88

EV to EBIT

8.33

EV to EBITDA

7.07

EV to Capital Employed

2.84

EV to Sales

3.71

PEG Ratio

0.55

Dividend Yield

0.03%

ROCE (Latest)

34.07%

ROE (Latest)

21.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

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

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

12What is working for the Company

NET SALES(HY)

At MXN 168,290.66 MM has Grown at 19.85%

INVENTORY TURNOVER RATIO(HY)

Highest at 6.57%

RAW MATERIAL COST(Y)

Fallen by -2.63% (YoY

CASH AND EQV(HY)

Highest at MXN 355,488.79 MM

OPERATING PROFIT MARGIN(Q)

Highest at 54.59 %

PRE-TAX PROFIT(Q)

Highest at MXN 38,803.57 MM

NET PROFIT(Q)

Highest at MXN 24,088.83 MM

EPS(Q)

Highest at MXN 3.17

-4What is not working for the Company

INTEREST(HY)

At MXN 6,042.16 MM has Grown at 22.83%

Here's what is working for Grupo México S.A.B. de C.V.

Net Sales

At MXN 168,290.66 MM has Grown at 19.85%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (MXN MM)

Inventory Turnover Ratio

Highest at 6.57% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Profit Margin

Highest at 54.59 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at MXN 38,803.57 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 24,088.83 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (MXN MM)

EPS

Highest at MXN 3.17

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (MXN)

Cash and Eqv

Highest at MXN 355,488.79 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.63% (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 México S.A.B. de C.V.

Interest

At MXN 6,042.16 MM has Grown at 22.83%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Non Operating Income

Highest at MXN 0.08 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income