Grupo Mexicano de Desarrollo SAB (GMD*) 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

Vinte Viviendas Integrales SAB de CV

Grupo GICSA SA de CV

Urbi Desarrollos Urbanos SAB de CV

Grupo Mexicano de Desarrollo SAB

Corporación Inmobiliaria Vesta SAB de CV

Dine Sab de CV

Planigrupo LATAM SAB de CV

Why is Grupo Mexicano de Desarrollo SAB ?

Strong Long Term Fundamental Strength with a 3.50% CAGR growth in Net Sales

High Debt company with Weak Long Term Fundamental Strength

Flat results in Jun 25

DEBT-EQUITY RATIO (HY) Highest at 11.77 %
INVENTORY TURNOVER RATIO(HY) Lowest at 6.23%
PRE-TAX PROFIT(Q) Lowest at MXN 183.08 MM

With ROE of 10.09%, it has a attractive valuation with a 0.20 Price to Book Value

Over the past year, while the stock has generated a return of -33.27%, its profits have risen by 86% ; the PEG ratio of the company is 0

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -33.27% returns in the last 1 year, the stock has also underperformed Mexico IPC in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Grupo Mexicano de Desarrollo SAB should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

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

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

Is Grupo Mexicano de Desarrollo SAB for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Grupo Mexicano de Desarrollo SAB

-33.27%

84.75

19.47%

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)

3.50%

EBIT Growth (5y)

0.71%

EBIT to Interest (avg)

4.41

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

18.65%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

18.80%

ROE (avg)

13.41%

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

0.20

EV to EBIT

1.71

EV to EBITDA

1.27

EV to Capital Employed

0.27

EV to Sales

0.37

PEG Ratio

0.02

Dividend Yield

ROCE (Latest)

15.76%

ROE (Latest)

10.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at MXN 828.92 MM

INTEREST COVERAGE RATIO(Q)

Highest at 648.4

RAW MATERIAL COST(Y)

Fallen by -11.6% (YoY

CASH AND EQV(HY)

Highest at MXN 3,500.32 MM

-14What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 11.77 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.23%

PRE-TAX PROFIT(Q)

Lowest at MXN 183.08 MM

NET PROFIT(Q)

Lowest at MXN 29.62 MM

EPS(Q)

Lowest at MXN 0.16

Here's what is working for Grupo Mexicano de Desarrollo SAB

Interest Coverage Ratio

Highest at 648.4

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 828.92 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (MXN MM)

Cash and Eqv

Highest at MXN 3,500.32 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -11.6% (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 111.63 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 Mexicano de Desarrollo SAB

Net Profit

At MXN 29.62 MM has Fallen at -79.57%

over average net sales of the previous four periods of MXN 144.97 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (MXN MM)

Pre-Tax Profit

At MXN 183.08 MM has Fallen at -37.92%

over average net sales of the previous four periods of MXN 294.91 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (MXN MM)

Pre-Tax Profit

Lowest at MXN 183.08 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 29.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (MXN MM)

EPS

Lowest at MXN 0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (MXN)

Debt-Equity Ratio

Highest at 11.77 %

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

Inventory Turnover Ratio

Lowest at 6.23%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio