HVA Foods PLC (HVA.N0000) 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

Renuka Agri Foods Plc

Tea Smallholder Factories Plc

Bogawantalawa Tea Estates Plc

Talawakelle Tea Estates Plc

Kelani Valley Plantations Plc

Maskeliya Plantations Plc

Renuka Holdings Plc

Malwatte Valley Plantations Plc

HVA Foods PLC

Raigam Wayamba Salterns Plc

Aitken Spence Plantation Managements PLC

Why is HVA Foods PLC ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate -4.25% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 7.69%, its profits have risen by 69.3%

Underperformed the market in the last 1 year

The stock has generated a return of 7.69% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 41.16%

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 FMCG)

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

Is HVA Foods PLC for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

HVA Foods PLC

7.69%

0.37

75.85%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.99%

EBIT Growth (5y)

-4.25%

EBIT to Interest (avg)

-0.17

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-13.14

Sales to Capital Employed (avg)

2.25

Tax Ratio

0.80%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.08%

ROE (avg)

32.17%

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

EV to EBIT

124.24

EV to EBITDA

51.03

EV to Capital Employed

1.08

EV to Sales

0.48

PEG Ratio

Dividend Yield

ROCE (Latest)

0.87%

ROE (Latest)

123.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

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

22What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 13.48 times

INTEREST COVERAGE RATIO(Q)

Highest at 128.6

RAW MATERIAL COST(Y)

Fallen by -71.03% (YoY

OPERATING PROFIT(Q)

Highest at LKR 32.3 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.35 %

PRE-TAX PROFIT(Q)

Highest at LKR 3.86 MM

NET PROFIT(Q)

Highest at LKR 3.86 MM

EPS(Q)

Highest at LKR 0.02

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR -164.11 MM

CASH AND EQV(HY)

Lowest at LKR 107.87 MM

Here's what is working for HVA Foods PLC

Interest Coverage Ratio

Highest at 128.6

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At LKR 3.86 MM has Grown at 175.56%

over average net sales of the previous four periods of LKR -5.11 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 3.86 MM has Grown at 175.56%

over average net sales of the previous four periods of LKR -5.11 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (LKR MM)

Inventory Turnover Ratio

Highest at 13.48 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Profit

Highest at LKR 32.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (LKR MM)

Operating Profit Margin

Highest at 5.35 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at LKR 3.86 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 3.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Raw Material Cost

Fallen by -71.03% (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 HVA Foods PLC

Operating Cash Flow

Lowest at LKR -164.11 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 (LKR MM)

Cash and Eqv

Lowest at LKR 107.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents