Hortico SA () 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

Hortico SA

Grodno SA

Prymus SA

Internity SA

Auto Partner SA

Ulma Construccion Polska SA

Bowim SA

Delko SA

TIM SA

Stalprofil SA

Drozapol-Profil SA

Why is Hortico SA ?

High Management Efficiency with a high ROE of 21.89%

Poor long term growth as Net Sales has grown by an annual rate of 9.67% over the last 5 years

OPERATING CASH FLOW(Y) Highest at PLN 17.51 MM
RAW MATERIAL COST(Y) Fallen by -45.34% (YoY)
OPERATING PROFIT(Q) Highest at PLN 10.88 MM

With ROE of 15.26%, it has a fair valuation with a 1.09 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 -9.51%, its profits have fallen by -1.3%

Underperformed the market in the last 1 year

Even though the market (Poland WIG) has generated returns of 27.62% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.51% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hortico SA should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Hortico SA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hortico SA

-9.51%

0.29

39.82%

Poland WIG

27.62%

1.38

19.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.67%

EBIT Growth (5y)

11.98%

EBIT to Interest (avg)

12.40

Debt to EBITDA (avg)

0.29

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

2.36

Tax Ratio

21.76%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

26.27%

ROE (avg)

21.89%

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

1.09

EV to EBIT

5.03

EV to EBITDA

4.28

EV to Capital Employed

1.09

EV to Sales

0.42

PEG Ratio

Dividend Yield

5.38%

ROCE (Latest)

21.73%

ROE (Latest)

15.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN 17.51 MM

RAW MATERIAL COST(Y)

Fallen by -45.34% (YoY

OPERATING PROFIT(Q)

Highest at PLN 10.88 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.98 %

PRE-TAX PROFIT(Q)

Highest at PLN 9.19 MM

NET PROFIT(Q)

At PLN 6.94 MM has Grown at 148.31%

-4What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBT-EQUITY RATIO (HY)

Highest at 25.4 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.2 times

DIVIDEND PER SHARE(HY)

Lowest at PLN 4.2

Here's what is working for Hortico SA

Pre-Tax Profit

At PLN 9.19 MM has Grown at 156.67%

over average net sales of the previous four periods of PLN 3.58 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (PLN MM)

Operating Cash Flow

Highest at PLN 17.51 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PLN MM)

Operating Profit

Highest at PLN 10.88 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PLN MM)

Operating Profit Margin

Highest at 18.98 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PLN 9.19 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PLN MM)

Net Profit

At PLN 6.94 MM has Grown at 148.31%

over average net sales of the previous four periods of PLN 2.79 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PLN MM)

Raw Material Cost

Fallen by -45.34% (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 Hortico SA

Debt-Equity Ratio

Highest at 25.4 %

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

Debtors Turnover Ratio

Lowest at 4.2 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at PLN 4.2

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (PLN)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)