Herfy Food Services Co. (6002) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Herfy Food Services Co.

Why is Herfy Food Services Co. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.93%

Poor long term growth as Net Sales has grown by an annual rate of -0.57% and Operating profit at -190.61% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(9M) At SAR -75.02 MM has Grown at -311.92%
OPERATING CASH FLOW(Y) Lowest at SAR 126.09 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 10.18%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -39.41%, its profits have fallen by -1409.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -39.41% returns in the last 1 year, the stock has also underperformed Saudi Arabia All Share TASI 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 Leisure Services)

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

Is Herfy Food Services Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Herfy Food Services Co.

-39.56%

-1.49

34.25%

Saudi Arabia All Share TASI

-12.63%

-0.89

14.47%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.57%

EBIT Growth (5y)

-190.61%

EBIT to Interest (avg)

1.49

Debt to EBITDA (avg)

0.22

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

1.11

Tax Ratio

13.05%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.93%

ROE (avg)

4.51%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.52

EV to EBIT

-18.23

EV to EBITDA

14.25

EV to Capital Employed

1.49

EV to Sales

1.30

PEG Ratio

Dividend Yield

ROCE (Latest)

-8.19%

ROE (Latest)

-11.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bullish

Mildly Bearish

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

11What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -24.57% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 51.46 %

OPERATING PROFIT(Q)

Highest at SAR 48.24 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.95 %

PRE-TAX PROFIT(Q)

Highest at SAR 1.3 MM

NET PROFIT(Q)

Highest at SAR 0.9 MM

EPS(Q)

Highest at SAR 0.01

-8What is not working for the Company

NET PROFIT(9M)

At SAR -75.02 MM has Grown at -311.92%

OPERATING CASH FLOW(Y)

Lowest at SAR 126.09 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 10.18%

Here's what is working for Herfy Food Services Co.

Operating Profit

Highest at SAR 48.24 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (SAR MM)

Operating Profit Margin

Highest at 16.95 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at SAR 1.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SAR MM)

Pre-Tax Profit

At SAR 1.3 MM has Grown at 104.43%

over average net sales of the previous four periods of SAR -29.33 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SAR MM)

Net Profit

Highest at SAR 0.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SAR MM)

Net Profit

At SAR 0.9 MM has Grown at 102.71%

over average net sales of the previous four periods of SAR -33.25 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SAR MM)

EPS

Highest at SAR 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SAR)

Debt-Equity Ratio

Lowest at 51.46 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -24.57% (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

Here's what is not working for Herfy Food Services Co.

Operating Cash Flow

Lowest at SAR 126.09 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 (SAR MM)

Debtors Turnover Ratio

Lowest at 10.18%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio