Grupo Minsa SAB de CV (MINSAB) 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 Minsa SAB de CV

Grupo Bimbo SAB de CV

Gruma SAB de CV

Why is Grupo Minsa SAB de CV ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.47 times

Poor long term growth as Operating profit has grown by an annual rate 47.42% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.47 times
The company has been able to generate a Return on Equity (avg) of 3.03% signifying low profitability per unit of shareholders funds

With ROE of 2.49%, it has a very expensive valuation with a 0.61 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 -1.83%, its profits have fallen by -48.4%

Underperformed the market in the last 1 year

Even though the market (Mexico IPC) has generated returns of 11.57% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.83% returns

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 Other Agricultural Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Grupo Minsa SAB de CV for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Grupo Minsa SAB de CV

-100.0%

3.93

5.82%

Mexico IPC

11.57%

0.60

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.67%

EBIT Growth (5y)

47.42%

EBIT to Interest (avg)

2.02

Debt to EBITDA (avg)

3.40

Net Debt to Equity (avg)

0.69

Sales to Capital Employed (avg)

1.36

Tax Ratio

23.63%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

7.67%

ROE (avg)

3.03%

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

0.61

EV to EBIT

4.42

EV to EBITDA

3.25

EV to Capital Employed

0.75

EV to Sales

0.75

PEG Ratio

Dividend Yield

ROCE (Latest)

17.06%

ROE (Latest)

2.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at MXN 3,850.36 MM

PRE-TAX PROFIT(Q)

Highest at MXN 200.01 MM

NET PROFIT(Q)

Highest at MXN 190.89 MM

EPS(Q)

Highest at MXN 0.56

-7What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 90.75 %

INTEREST(Q)

At MXN 122.74 MM has Grown at 22.1%

RAW MATERIAL COST(Y)

Grown by 35.83% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.75 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.8 times

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

Pre-Tax Profit

At MXN 200.01 MM has Grown at 223.22%

over average net sales of the previous four periods of MXN 61.88 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (MXN MM)

Net Profit

At MXN 190.89 MM has Grown at 401.26%

over average net sales of the previous four periods of MXN 38.08 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (MXN MM)

Operating Cash Flow

Highest at MXN 3,850.36 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (MXN MM)

Pre-Tax Profit

Highest at MXN 200.01 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 190.89 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (MXN MM)

EPS

Highest at MXN 0.56

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (MXN)

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

Interest

At MXN 122.74 MM has Grown at 22.1%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Debt-Equity Ratio

Highest at 90.75 % and Grown

In each half year 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 2.75 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.8 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 35.83% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales