ScoreComparison
Why is HNB Finance Plc ?
1
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.65%
- Poor long term growth as Operating profit has grown by an annual rate of 0.20%
- The company has been able to generate a Return on Equity (avg) of 5.65% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Operating profit has grown by an annual rate of 0.20%
3
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at LKR 4,160.92 MM
- NET PROFIT(HY) At LKR 1,060.54 MM has Grown at 123.73%
- ROCE(HY) Highest at 19.96%
4
With ROE of 18.16%, it has a very expensive valuation with a 1.88 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 36.39%, its profits have risen by 125.8% ; the PEG ratio of the company is 0.1
5
Market Beating Performance
- The stock has generated a return of 36.39% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 11.95%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to HNB Finance Plc should be less than 10%
- Overall Portfolio exposure to Finance should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is HNB Finance Plc for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
HNB Finance Plc
36.39%
1.02
51.94%
Sri Lanka CSE All Share
11.95%
0.72
16.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
20.61%
EBIT Growth (5y)
0.20%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
37.97%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
59.49%
ROE (avg)
5.65%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
1.88
EV to EBIT
3.60
EV to EBITDA
3.37
EV to Capital Employed
2.12
EV to Sales
0.89
PEG Ratio
0.08
Dividend Yield
NA
ROCE (Latest)
58.88%
ROE (Latest)
18.16%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend15What is working for the Company
OPERATING CASH FLOW(Y)
Highest at LKR 4,160.92 MM
NET PROFIT(HY)
At LKR 1,060.54 MM has Grown at 123.73%
ROCE(HY)
Highest at 19.96%
NET SALES(Q)
Highest at LKR 5,255.04 MM
PRE-TAX PROFIT(Q)
Highest at LKR 826.92 MM
-1What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 97.89 %
Here's what is working for HNB Finance Plc
Operating Cash Flow
Highest at LKR 4,160.92 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (LKR MM)
Net Sales
Highest at LKR 5,255.04 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (LKR MM)
Net Profit
At LKR 1,060.54 MM has Grown at 123.73%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (LKR MM)
Net Sales
At LKR 5,255.04 MM has Grown at 36.68%
over average net sales of the previous four periods of LKR 3,844.84 MMMOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Pre-Tax Profit
Highest at LKR 826.92 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (LKR MM)
Here's what is not working for HNB Finance Plc
Debt-Equity Ratio
Highest at 97.89 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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