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

Grupe SAB de CV

Grupo Hotelero Santa Fe SAB de CV

Norte 19

Grupo Posadas, 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 13.25% and Operating profit at 29.50% over the last 5 years
The company is Net-Debt Free

With a fall in Net Sales of -4.15%, the company declared Very Negative results in Mar 26

NET PROFIT(Q) At MXN 16.09 MM has Fallen at -88.9%
OPERATING CASH FLOW(Y) Lowest at MXN 648.51 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 21.77 times

With ROE of 19.21%, it has a fair valuation with a 3.17 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 5.26%, its profits have risen by 568.1% ; the PEG ratio of the company is 0

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

5.26%

0.75

9.56%

Mexico IPC

11.57%

0.71

19.23%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.25%

EBIT Growth (5y)

29.50%

EBIT to Interest (avg)

0.74

Debt to EBITDA (avg)

3.09

Net Debt to Equity (avg)

1.21

Sales to Capital Employed (avg)

1.03

Tax Ratio

86.40%

Dividend Payout Ratio

29.91%

Pledged Shares

Institutional Holding

ROCE (avg)

10.03%

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

3.17

EV to EBIT

16.32

EV to EBITDA

8.57

EV to Capital Employed

2.09

EV to Sales

1.62

PEG Ratio

0.03

Dividend Yield

ROCE (Latest)

12.79%

ROE (Latest)

19.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

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

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 134.19 %

-22What is not working for the Company

NET PROFIT(Q)

At MXN 16.09 MM has Fallen at -88.9%

OPERATING CASH FLOW(Y)

Lowest at MXN 648.51 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 21.77 times

INTEREST COVERAGE RATIO(Q)

Lowest at 137.35

RAW MATERIAL COST(Y)

Grown by 23.17% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.34 times

INTEREST(Q)

Highest at MXN 304.35 MM

PRE-TAX PROFIT(Q)

Lowest at MXN -14.6 MM

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

Debt-Equity Ratio

Lowest at 134.19 %

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 -14.6 MM has Fallen at -107.31%

over average net sales of the previous four periods of MXN 199.72 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (MXN MM)

Net Profit

At MXN 16.09 MM has Fallen at -88.9%

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)

Interest

At MXN 304.35 MM has Grown at 40.72%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Interest Coverage Ratio

Lowest at 137.35

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 21.77 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at MXN 648.51 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (MXN MM)

Interest

Highest at MXN 304.35 MM

in the last five periods and Increased by 40.72% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Pre-Tax Profit

Lowest at MXN -14.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (MXN MM)

Debtors Turnover Ratio

Lowest at 3.34 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 23.17% (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