Grupo Posadas, SAB de CV (POSADASA) 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

Norte 19

Grupo Hotelero Santa Fe SAB de CV

Grupo Posadas, SAB de CV

Grupe SAB de CV

Why is Grupo Posadas, SAB de CV ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 10.03%

Poor long term growth as Net Sales has grown by an annual rate of 20.47% and Operating profit at 21.60% over the last 5 years
The company is Net-Debt Free

With a fall in Net Sales of -3.35%, the company declared Very Negative results in Jun 26

The company has declared negative results for the last 2 consecutive quarters
PRE-TAX PROFIT(Q) At MXN 38 MM has Fallen at -77.02%
OPERATING CASH FLOW(Y) Lowest at MXN 822.86 MM
RAW MATERIAL COST(Y) Grown by 27.19% (YoY)

With ROE of 9.26%, it has a expensive valuation with a 3.01 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -0.18%, its profits have risen by 670.8% ; the PEG ratio of the company is 0.1

Below par performance in long term as well as near term

Along with generating -0.18% returns in the last 1 year, the stock has also underperformed Mexico IPC in the last 3 years, 1 year and 3 months

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 Hotels & Resorts)

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

Is Grupo Posadas, SAB de CV for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Grupo Posadas, SAB de CV

-0.18%

0.09

8.02%

Mexico IPC

14.41%

0.77

19.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.47%

EBIT Growth (5y)

21.60%

EBIT to Interest (avg)

1.12

Debt to EBITDA (avg)

2.92

Net Debt to Equity (avg)

1.21

Sales to Capital Employed (avg)

1.01

Tax Ratio

32.51%

Dividend Payout Ratio

29.91%

Pledged Shares

Institutional Holding

ROCE (avg)

11.89%

ROE (avg)

31.95%

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

3.01

EV to EBIT

22.29

EV to EBITDA

10.02

EV to Capital Employed

2.08

EV to Sales

1.64

PEG Ratio

0.05

Dividend Yield

0.03%

ROCE (Latest)

9.33%

ROE (Latest)

9.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 124.16 %

-22What is not working for the Company

PRE-TAX PROFIT(Q)

At MXN 38 MM has Fallen at -77.02%

OPERATING CASH FLOW(Y)

Lowest at MXN 822.86 MM

RAW MATERIAL COST(Y)

Grown by 27.19% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.33 times

OPERATING PROFIT(Q)

Lowest at MXN 355.85 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.74 %

NET PROFIT(Q)

Lowest at MXN -42.55 MM

EPS(Q)

Lowest at MXN -0.09

Here's what is working for Grupo Posadas, SAB de CV

Debt-Equity Ratio

Lowest at 124.16 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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

Pre-Tax Profit

At MXN 38 MM has Fallen at -77.02%

over average net sales of the previous four periods of MXN 165.4 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (MXN MM)

Net Profit

At MXN -42.55 MM has Fallen at -138.11%

over average net sales of the previous four periods of MXN 111.65 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (MXN MM)

Operating Cash Flow

Lowest at MXN 822.86 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 355.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (MXN MM)

Operating Profit Margin

Lowest at 12.74 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at MXN -42.55 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (MXN MM)

EPS

Lowest at MXN -0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (MXN)

Debtors Turnover Ratio

Lowest at 3.33 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 27.19% (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