Grupo Palacio de Hierro SAB de CV (GPH1) 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 Palacio de Hierro SAB de CV

El Puerto de Liverpool SAB de CV

Grupo Carso SAB de CV

Grupo Sanborns SAB de CV

Why is Grupo Palacio de Hierro SAB de CV ?

Poor Management Efficiency with a low ROCE of 10.85%

The company has been able to generate a Return on Capital Employed (avg) of 10.85% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.86 times

Poor long term growth as Operating profit has grown by an annual rate 46.34% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.86 times
The company has been able to generate a Return on Equity (avg) of 7.40% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 46.34% of over the last 5 years

The company has declared negative results in Mar'2025 after 2 consecutive positive quarters

OPERATING CASH FLOW(Y) Lowest at MXN 2,470.03 MM
CASH AND EQV(HY) Lowest at MXN 3,850.35 MM
DEBT-EQUITY RATIO (HY) Highest at 46.59 %

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 Palacio de Hierro SAB de CV for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Grupo Palacio de Hierro SAB de CV

-100.0%

-0.67

6.80%

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)

16.45%

EBIT Growth (5y)

46.34%

EBIT to Interest (avg)

2.79

Debt to EBITDA (avg)

1.86

Net Debt to Equity (avg)

0.30

Sales to Capital Employed (avg)

1.51

Tax Ratio

31.04%

Dividend Payout Ratio

25.16%

Pledged Shares

Institutional Holding

ROCE (avg)

10.85%

ROE (avg)

7.40%

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

0.59

EV to EBIT

5.48

EV to EBITDA

3.51

EV to Capital Employed

0.72

EV to Sales

0.50

PEG Ratio

0.31

Dividend Yield

0.89%

ROCE (Latest)

13.22%

ROE (Latest)

11.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bullish (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

1What is working for the Company

NO KEY POSITIVE TRIGGERS

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at MXN 2,470.03 MM

CASH AND EQV(HY)

Lowest at MXN 3,850.35 MM

DEBT-EQUITY RATIO (HY)

Highest at 46.59 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.19 times

OPERATING PROFIT(Q)

Lowest at MXN 1,542.29 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.85 %

PRE-TAX PROFIT(Q)

Lowest at MXN 462.54 MM

NET PROFIT(Q)

Lowest at MXN 308.88 MM

EPS(Q)

Lowest at MXN 0.82

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

Operating Cash Flow

Lowest at MXN 2,470.03 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (MXN MM)

Operating Profit

Lowest at MXN 1,542.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (MXN MM)

Operating Profit Margin

Lowest at 11.85 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at MXN 462.54 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (MXN MM)

Pre-Tax Profit

Fallen at -32.41%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (MXN MM)

Net Profit

Lowest at MXN 308.88 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (MXN MM)

Net Profit

Fallen at -39.01%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (MXN MM)

EPS

Lowest at MXN 0.82

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (MXN)

Cash and Eqv

Lowest at MXN 3,850.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 46.59 %

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 5.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio