Hoa Sen Group (HSG) 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

Hoa Phat Group JSC

Tien Len Steel Corp. JSC

Vietnam Germany Steel Pipe JSC

Hoa Sen Group

Son Ha International Corp.

Dai Thien Loc Corp.

Viet Phat Import Export Trading Investment JSC

Nam Kim Steel JSC

Pomina Steel Corp.

Why is Hoa Sen Group ?

The company has declared Negative results for the last 3 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 655.26
RAW MATERIAL COST(Y) Grown by 6.72% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 3.17 times

With ROE of 4.08%, it has a very expensive valuation with a 1.01 Price to Book Value

Over the past year, while the stock has generated a return of -18.03%, its profits have fallen by -59.6%
At the current price, the company has a high dividend yield of 2.7

Below par performance in long term as well as near term

Along with generating -18.03% returns in the last 1 year, the stock has also underperformed Vietnam VN Ho Chi Minh Index in the last 3 years, 1 year and 3 months

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 Ferrous Metals)

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

Is Hoa Sen Group for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hoa Sen Group

-0.71%

-1.10

34.17%

Vietnam VN Ho Chi Minh Index

38.87%

1.90

22.90%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.91%

EBIT Growth (5y)

-23.11%

EBIT to Interest (avg)

5.07

Debt to EBITDA (avg)

3.89

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

2.36

Tax Ratio

13.10%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.34%

ROE (avg)

14.39%

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

0.81

EV to EBIT

22.64

EV to EBITDA

9.34

EV to Capital Employed

0.87

EV to Sales

0.42

PEG Ratio

1.53

Dividend Yield

3.35%

ROCE (Latest)

3.84%

ROE (Latest)

5.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

No Trend

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

3What is working for the Company

NET PROFIT(9M)

At VND 265,812.63 MM has Grown at 44.07%

OPERATING PROFIT MARGIN(Q)

Highest at 5.18 %

-18What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 429.4

RAW MATERIAL COST(Y)

Grown by 8.47% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 63.34 %

INTEREST(Q)

Highest at VND 108,216.16 MM

NET PROFIT(Q)

At VND 118,713.12 MM has Fallen at -24.18%

Here's what is working for Hoa Sen Group

Operating Profit Margin

Highest at 5.18 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Here's what is not working for Hoa Sen Group

Interest

At VND 108,216.16 MM has Grown at 107.25%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (VND MM)

Interest Coverage Ratio

Lowest at 429.4

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at VND 108,216.16 MM

in the last five periods and Increased by 107.25% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (VND MM)

Net Profit

At VND 118,713.12 MM has Fallen at -24.18%

over average net sales of the previous four periods of VND 156,575.43 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (VND MM)

Debt-Equity Ratio

Highest at 63.34 %

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

Raw Material Cost

Grown by 8.47% (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