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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Shiny Health & Wellness Corp.

LXRandCo, Inc.

Aretto Wellness, Inc.

Why is Kits Eyecare Ltd. ?

With ROE of 4.98%, it has a very expensive valuation with a 6.87 Price to Book Value

Over the past year, while the stock has generated a return of -4.70%, 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 30.16% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.70% 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.

-7.87%

0.92

49.64%

S&P/TSX 60

29.8%

2.35

12.81%

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)

-1.90

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

2.52

Tax Ratio

30.27%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.37%

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

138

Industry P/E

Price to Book Value

6.87

EV to EBIT

51.68

EV to EBITDA

41.28

EV to Capital Employed

9.37

EV to Sales

2.15

PEG Ratio

Dividend Yield

ROCE (Latest)

18.13%

ROE (Latest)

4.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

17What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -23.39 %

NET SALES(Q)

Highest at CAD 57.47 MM

RAW MATERIAL COST(Y)

Fallen by -12.37% (YoY

CASH AND EQV(HY)

Highest at CAD 55.66 MM

OPERATING PROFIT(Q)

Highest at CAD 3.68 MM

PRE-TAX PROFIT(Q)

Highest at CAD 2.95 MM

NET PROFIT(Q)

Highest at CAD 1.98 MM

EPS(Q)

Highest at CAD 0.06

-13What is not working for the Company

INTEREST(HY)

At CAD 2.02 MM has Grown at 238.82%

NET PROFIT(HY)

At CAD 2.24 MM has Grown at -48.36%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.26 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 58.97 times

Here's what is working for Kits Eyecare Ltd.

Net Sales

Highest at CAD 57.47 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Pre-Tax Profit

At CAD 2.95 MM has Grown at 133.96%

over average net sales of the previous four periods of CAD 1.26 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 1.98 MM has Grown at 154.02%

over average net sales of the previous four periods of CAD 0.78 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Debt-Equity Ratio

Lowest at -23.39 % 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

Operating Profit

Highest at CAD 3.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Pre-Tax Profit

Highest at CAD 2.95 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 1.98 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Cash and Eqv

Highest at CAD 55.66 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -12.37% (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 2.02 MM has Grown at 238.82%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Inventory Turnover Ratio

Lowest at 5.26 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 58.97 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio