Grupo Traxión SAB de CV (TRAXIONA) 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 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 Traxión SAB de CV ?

High Debt Company with a Debt to Equity ratio (avg) at times

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.64% signifying low profitability per unit of shareholders funds
NET PROFIT(HY) At MXN 166.08 MM has Grown at -54.8%
DEBT-EQUITY RATIO (HY) Highest at 107.74 %
INVENTORY TURNOVER RATIO(HY) Lowest at 50.97 times

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -28.26% returns in the last 1 year, the stock has also underperformed Mexico IPC in each of the last 3 annual periods

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 Transport Services)

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

Is Grupo Traxión SAB de CV for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Grupo Traxión SAB de CV

-28.26%

-2.01

27.41%

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)

17.84%

EBIT Growth (5y)

10.87%

EBIT to Interest (avg)

1.99

Debt to EBITDA (avg)

2.11

Net Debt to Equity (avg)

0.84

Sales to Capital Employed (avg)

1.03

Tax Ratio

31.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.84%

ROE (avg)

5.64%

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

0.66

EV to EBIT

7.93

EV to EBITDA

4.08

EV to Capital Employed

0.82

EV to Sales

0.75

PEG Ratio

Dividend Yield

ROCE (Latest)

10.31%

ROE (Latest)

4.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at MXN 3,139.19 MM

NET SALES(Q)

Highest at MXN 8,622.3 MM

-15What is not working for the Company

NET PROFIT(HY)

At MXN 166.08 MM has Grown at -54.8%

DEBT-EQUITY RATIO (HY)

Highest at 107.74 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 50.97 times

INTEREST COVERAGE RATIO(Q)

Lowest at 243.75

RAW MATERIAL COST(Y)

Grown by 18.68% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.16 times

OPERATING PROFIT(Q)

Lowest at MXN 1,143.67 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 13.26 %

PRE-TAX PROFIT(Q)

Fallen at -46.97%

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

Net Sales

Highest at MXN 8,622.3 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (MXN MM)

Cash and Eqv

Highest at MXN 3,139.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at MXN 779.26 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 Traxión SAB de CV

Net Profit

At MXN 166.08 MM has Grown at -54.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (MXN MM)

Interest Coverage Ratio

Lowest at 243.75

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 107.74 % 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 50.97 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 Profit

Lowest at MXN 1,143.67 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (MXN MM)

Operating Profit Margin

Lowest at 13.26 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -46.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (MXN MM)

Debtors Turnover Ratio

Lowest at 4.16 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 18.68% (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