John Keells Plc (JKL.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

L B Finance Plc

John Keells Plc

First Capital Treasuries Plc

Asia Capital Plc

Why is John Keells Plc ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.19

Poor long term growth as Operating profit has grown by an annual rate 25.07% of over the last 5 years

The company declared very positive results in Dec'24 after flat results in Sep'24

DEBT-EQUITY RATIO (HY) Lowest at -20.14 %
DIVIDEND PAYOUT RATIO(Y) Highest at 90.63%
RAW MATERIAL COST(Y) Fallen by 0.27% (YoY)

With ROE of 3.78%, it has a very attractive valuation with a 1.13 Price to Book Value

Over the past year, while the stock has generated a return of 3.41%, its profits have risen by 13% ; the PEG ratio of the company is 2.3

Underperformed the market in the last 1 year

The stock has generated a return of 3.41% 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 hold?

Overall Portfolio exposure to John Keells Plc should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

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

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

Is John Keells Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

John Keells Plc

2.78%

0.97

29.55%

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)

9.30%

EBIT Growth (5y)

25.07%

EBIT to Interest (avg)

8.19

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

37.11%

Dividend Payout Ratio

92.71%

Pledged Shares

Institutional Holding

ROCE (avg)

6.59%

ROE (avg)

4.69%

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

1.13

EV to EBIT

32.70

EV to EBITDA

24.27

EV to Capital Employed

1.16

EV to Sales

4.32

PEG Ratio

2.33

Dividend Yield

0.12%

ROCE (Latest)

3.54%

ROE (Latest)

3.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

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

7What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -20.14 %

DIVIDEND PAYOUT RATIO(Y)

Highest at 90.63%

RAW MATERIAL COST(Y)

Fallen by 0.27% (YoY

CASH AND EQV(HY)

Highest at LKR 2,430.3 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 518.22 times

DIVIDEND PER SHARE(HY)

Highest at LKR 1.04

-4What is not working for the Company

OPERATING PROFIT MARGIN(Q)

Lowest at 17.95 %

NET PROFIT(Q)

Lowest at LKR 22.68 MM

EPS(Q)

Lowest at LKR 0.5

Here's what is working for John Keells Plc

Debt-Equity Ratio

Lowest at -20.14 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at LKR 2,430.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 518.22 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Dividend per share

Highest at LKR 1.04

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Dividend Payout Ratio

Highest at 90.63%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.27% (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

Depreciation

Highest at LKR 12.94 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (LKR MM)

Here's what is not working for John Keells Plc

Operating Profit Margin

Lowest at 17.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at LKR 22.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

Net Profit

Fallen at -51.12%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

EPS

Lowest at LKR 0.5

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)