Kits Eyecare Ltd. () 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

Kits Eyecare Ltd.

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Aretto Wellness, Inc.

Why is Kits Eyecare Ltd. ?

Positive results in Jun 26

OPERATING CASH FLOW(Y) Highest at CAD 12.18 MM
ROCE(HY) Highest at 8.54%
DEBT-EQUITY RATIO (HY) Lowest at -30.54 %

With ROE of 4.98%, it has a very expensive valuation with a 6.14 Price to Book Value

Over the past year, while the stock has generated a return of -14.41%, its profits have fallen by -25.3%

Underperformed the market in the last 1 year

Even though the market (S&P/TSX 60) has generated returns of 29.63% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -14.41% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kits Eyecare Ltd. should be less than 10%
Overall Portfolio exposure to E-Retail/ E-Commerce should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)

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

Is Kits Eyecare Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Kits Eyecare Ltd.

-14.41%

1.27

51.07%

S&P/TSX 60

29.63%

2.46

12.04%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.30%

EBIT Growth (5y)

28.26%

EBIT to Interest (avg)

-0.57

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

2.52

Tax Ratio

38.83%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.00%

ROE (avg)

1.53%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

123

Industry P/E

Price to Book Value

6.14

EV to EBIT

45.95

EV to EBITDA

36.71

EV to Capital Employed

8.33

EV to Sales

1.92

PEG Ratio

Dividend Yield

ROCE (Latest)

18.13%

ROE (Latest)

4.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

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

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 12.18 MM

ROCE(HY)

Highest at 8.54%

DEBT-EQUITY RATIO (HY)

Lowest at -30.54 %

NET SALES(Q)

Highest at CAD 58.43 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -4.82% (YoY

NET PROFIT(Q)

At CAD 1.46 MM has Grown at 67.26%

-10What is not working for the Company

INTEREST(HY)

At CAD 0.95 MM has Grown at 217.73%

OPERATING PROFIT(Q)

Lowest at CAD 1.51 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.59 %

Here's what is working for Kits Eyecare Ltd.

Operating Cash Flow

Highest at CAD 12.18 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 58.43 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Debt-Equity Ratio

Lowest at -30.54 % 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

Net Profit

At CAD 1.46 MM has Grown at 67.26%

over average net sales of the previous four periods of CAD 0.87 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Raw Material Cost

Fallen by -4.82% (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 Kits Eyecare Ltd.

Interest

At CAD 0.95 MM has Grown at 217.73%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Operating Profit

Lowest at CAD 1.51 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 2.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales