Grupo TMM SAB (TMMA) 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

Promotora y Operadora de Infraestructura SA

Grupo TMM SAB

Grupo Aeroportuario del Centro Norte SAB de CV

Grupo Aeroportuario del Pacífico SAB de CV

Aleatica SAB de CV

Impulsora del Desarrollo y el Empleo en América Latina SAB

Grupo Traxión SAB de CV

Grupo Aeroportuario del Sureste SA de CV

Why is Grupo TMM SAB ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 1.72%

Poor long term growth as Net Sales has grown by an annual rate of 9.83% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.45 times

The company has declared Positive results for the last 5 consecutive quarters

ROCE(HY) Highest at 13.47%
INVENTORY TURNOVER RATIO(HY) Highest at 9.8 times
RAW MATERIAL COST(Y) Fallen by -70.33% (YoY)

With ROE of 10.89%, it has a very attractive valuation with a 0.43 Price to Book Value

Over the past year, while the stock has generated a return of 16.10%, its profits have risen by 761.1% ; the PEG ratio of the company is 0

Underperformed the market in the last 1 year

The stock has generated a return of 16.10% in the last 1 year, much lower than market (Mexico IPC) returns of 31.40%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Grupo TMM SAB should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

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

Is Grupo TMM SAB for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Grupo TMM SAB

16.1%

5.83

24.80%

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)

9.83%

EBIT Growth (5y)

36.93%

EBIT to Interest (avg)

0.48

Debt to EBITDA (avg)

2.45

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

0.63

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.86%

ROE (avg)

1.72%

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

0.43

EV to EBIT

7.28

EV to EBITDA

5.44

EV to Capital Employed

0.60

EV to Sales

0.96

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

8.20%

ROE (Latest)

10.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

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

24What is working for the Company

ROCE(HY)

Highest at 13.47%

INVENTORY TURNOVER RATIO(HY)

Highest at 9.8 times

RAW MATERIAL COST(Y)

Fallen by -70.33% (YoY

NET SALES(Q)

Highest at MXN 568.44 MM

OPERATING PROFIT(Q)

Highest at MXN 138.49 MM

OPERATING PROFIT MARGIN(Q)

Highest at 24.36 %

PRE-TAX PROFIT(Q)

At MXN 97.82 MM has Grown at 60.28%

NET PROFIT(Q)

At MXN 97.86 MM has Grown at 60.38%

-10What is not working for the Company

INTEREST(HY)

At MXN 63.51 MM has Grown at 193.57%

OPERATING CASH FLOW(Y)

Lowest at MXN 74.9 MM

Here's what is working for Grupo TMM SAB

Inventory Turnover Ratio

Highest at 9.8 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at MXN 568.44 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (MXN MM)

Net Sales

At MXN 568.44 MM has Grown at 15.4%

over average net sales of the previous four periods of MXN 492.56 MM

MOJO Watch

Near term sales trend is positive

Net Sales (MXN MM)

Operating Profit

Highest at MXN 138.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (MXN MM)

Operating Profit Margin

Highest at 24.36 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At MXN 97.82 MM has Grown at 60.28%

over average net sales of the previous four periods of MXN 61.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (MXN MM)

Net Profit

At MXN 97.86 MM has Grown at 60.38%

over average net sales of the previous four periods of MXN 61.02 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (MXN MM)

Raw Material Cost

Fallen by -70.33% (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 30.08 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 TMM SAB

Interest

At MXN 63.51 MM has Grown at 193.57%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Operating Cash Flow

Lowest at MXN 74.9 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (MXN MM)