Why is Hum Network Ltd. ?
1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 38.57
2
Low Debt Company with Strong Long Term Fundamental Strength
3
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)
4
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
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.
4.85%
0.26
47.43%
Pakistan KSE 100 Share
60.28%
2.81
22.77%
Quality key factors
Factor
Value
Sales Growth (5y)
17.76%
EBIT Growth (5y)
6.10%
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)
1.05
Tax Ratio
9.84%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
32.34%
ROE (avg)
25.16%
Valuation Key Factors 
Factor
Value
P/E Ratio
15
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
NA
Dividend Yield
NA
ROCE (Latest)
10.35%
ROE (Latest)
10.47%
Technical 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
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Bullish
Bullish
Technical Movement
6What is working for the Company
CASH AND EQV(HY)
Highest at PKR 7,709.98 MM
INVENTORY TURNOVER RATIO(HY)
Highest at 380.37%
DEBTORS TURNOVER RATIO(HY)
Highest at 3.01%
NET SALES(Q)
At PKR 4,536.31 MM has Grown at 60.73%
-6What is not working for the Company
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
DEBT-EQUITY RATIO
(HY)
Highest at -27.02 %
Here's what is working for Hum Network Ltd.
Net Sales
At PKR 4,536.31 MM has Grown at 60.73%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (PKR MM)
Cash and Eqv
Highest at PKR 7,709.98 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Inventory Turnover Ratio
Highest at 380.37%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 3.01%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Depreciation
Highest at PKR 58.63 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (PKR MM)
Here's what is not working for Hum Network Ltd.
Operating Cash Flow
Lowest at PKR -110.31 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (PKR MM)
Debt-Equity Ratio
Highest at -27.02 %
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
Raw Material Cost
Grown by 37.14% (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






