Hum Network Ltd. (HUMNL) 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

Hum Network Ltd.

Why is Hum Network Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 38.57

Low Debt Company with Strong Long Term Fundamental Strength

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at PKR -110.31 MM
ROCE(HY) Lowest at 25.49%
RAW MATERIAL COST(Y) Grown by 37.14% (YoY)

With ROE of 22.2, it has a attractive valuation with a 1.2 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 0%, its profits have risen by 11.5% ; the PEG ratio of the company is 0.5

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 Media & Entertainment)

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

Is Hum Network Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hum Network Ltd.

-100.0%

0.26

47.43%

Pakistan KSE 100 Share

26.26%

2.81

22.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.09%

EBIT Growth (5y)

-40.58%

EBIT to Interest (avg)

38.57

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

1.04

Tax Ratio

9.84%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

32.34%

ROE (avg)

25.16%

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

1.52

EV to EBIT

17.61

EV to EBITDA

13.77

EV to Capital Employed

1.82

EV to Sales

1.17

PEG Ratio

Dividend Yield

ROCE (Latest)

10.35%

ROE (Latest)

10.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly 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

2What is working for the Company

CASH AND EQV(HY)

Highest at PKR 8,718.61 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 505.29 times

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR -409.99 MM

NET SALES(9M)

At PKR 6,506.05 MM has Grown at -35.52%

PRE-TAX PROFIT(Q)

At PKR -120.96 MM has Fallen at -145.33%

INTEREST(Q)

At PKR 12.46 MM has Grown at 39.99%

NET PROFIT(Q)

At PKR 31.57 MM has Fallen at -86.57%

RAW MATERIAL COST(Y)

Grown by 34.86% (YoY

Here's what is working for Hum Network Ltd.

Cash and Eqv

Highest at PKR 8,718.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 505.29 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Hum Network Ltd.

Pre-Tax Profit

At PKR -120.96 MM has Fallen at -145.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PKR MM)

Net Sales

At PKR 6,506.05 MM has Grown at -35.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (PKR MM)

Operating Cash Flow

Lowest at PKR -409.99 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 (PKR MM)

Interest

At PKR 12.46 MM has Grown at 39.99%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Net Profit

At PKR 31.57 MM has Fallen at -86.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PKR MM)

Raw Material Cost

Grown by 34.86% (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