Hayleys Plc (HAYL.N0000) 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

John Keells Holdings Plc

Hemas Holdings Plc

Bukit Darah PLC

Hayleys Plc

E.B. Creasy & Co. Plc

CIC Holdings Plc

The Colombo Fort Land & Building Co. Plc

Why is Hayleys Plc ?

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

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

Healthy long term growth as Operating profit has grown by an annual rate 16.73%

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

NET SALES(Q) Highest at LKR 151,616.97 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 112.78%
CASH AND EQV(HY) Highest at LKR 113,437.85 MM

With ROE of 23.59%, it has a very expensive valuation with a 1.50 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 69.26%, its profits have risen by 35.7% ; the PEG ratio of the company is 0.2

Market Beating performance in long term as well as near term

Along with generating 69.26% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hayleys Plc should be less than 10%
Overall Portfolio exposure to Diversified should be less than 30%

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

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

Is Hayleys Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Hayleys Plc

-100.0%

4.87

30.62%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.93%

EBIT Growth (5y)

16.73%

EBIT to Interest (avg)

1.94

Debt to EBITDA (avg)

2.42

Net Debt to Equity (avg)

1.50

Sales to Capital Employed (avg)

1.68

Tax Ratio

36.60%

Dividend Payout Ratio

33.46%

Pledged Shares

Institutional Holding

ROCE (avg)

20.97%

ROE (avg)

29.57%

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

1.50

EV to EBIT

7.06

EV to EBITDA

5.47

EV to Capital Employed

1.18

EV to Sales

0.60

PEG Ratio

0.18

Dividend Yield

0.05%

ROCE (Latest)

16.79%

ROE (Latest)

23.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

5What is working for the Company

NET SALES(Q)

Highest at LKR 151,616.97 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 112.78%

CASH AND EQV(HY)

Highest at LKR 113,437.85 MM

DIVIDEND PER SHARE(HY)

Highest at LKR 3.31

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR -31,910.48 MM

DEBT-EQUITY RATIO (HY)

Highest at 208.68 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.31 times

INTEREST(Q)

Highest at LKR 5,386.3 MM

Here's what is working for Hayleys Plc

Net Sales

Highest at LKR 151,616.97 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (LKR MM)

Cash and Eqv

Highest at LKR 113,437.85 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at LKR 3.31

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Dividend Payout Ratio

Highest at 112.78%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at LKR 3,706.78 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (LKR MM)

Here's what is not working for Hayleys Plc

Operating Cash Flow

Lowest at LKR -31,910.48 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (LKR MM)

Interest

At LKR 5,386.3 MM has Grown at 24.45%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Debt-Equity Ratio

Highest at 208.68 % 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

Interest

Highest at LKR 5,386.3 MM

in the last five periods and Increased by 24.45% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Debtors Turnover Ratio

Lowest at 3.31 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio