KME Group SpA (IKG) 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

KME Group SpA

Why is KME Group SpA ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

Poor long term growth as Net Sales has grown by an annual rate of -61.60% and Operating profit at -4.64%

Negative results in Dec 25

ROCE(HY) Lowest at -61.24%
DEBT-EQUITY RATIO (HY) Highest at 569.2 %
RAW MATERIAL COST(Y) Grown by 34.56% (YoY)

With ROE of 4.59%, it has a Very Expensive valuation with a 2.16 Price to Book Value

Over the past year, while the stock has generated a return of -3.51%, its profits have risen by 103.8% ; the PEG ratio of the company is 0.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.51% returns in the last 1 year, the stock has also underperformed Italy FTSE MIB in each of the last 3 annual periods

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 Minerals & Mining)

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

Is KME Group SpA for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

KME Group SpA

-100.0%

7.34

22.26%

Italy FTSE MIB

27.29%

1.67

16.34%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-61.60%

EBIT Growth (5y)

-4.64%

EBIT to Interest (avg)

0.88

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.08

Tax Ratio

12.98%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.75%

ROE (avg)

1.30%

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

2.16

EV to EBIT

18.65

EV to EBITDA

16.93

EV to Capital Employed

7.12

EV to Sales

7.13

PEG Ratio

0.45

Dividend Yield

ROCE (Latest)

38.19%

ROE (Latest)

4.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.6 times

DEBTORS TURNOVER RATIO(HY)

Highest at 10.86 times

-12What is not working for the Company

ROCE(HY)

Lowest at -61.24%

DEBT-EQUITY RATIO (HY)

Highest at 569.2 %

RAW MATERIAL COST(Y)

Grown by 34.56% (YoY

CASH AND EQV(HY)

Lowest at EUR 97.11 MM

PRE-TAX PROFIT(Q)

Lowest at EUR -102.2 MM

NET PROFIT(Q)

Lowest at EUR -81.52 MM

EPS(Q)

Lowest at EUR -0.32

Here's what is working for KME Group SpA

Inventory Turnover Ratio

Highest at 3.6 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 10.86 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

At EUR 30.03 MM has Grown at 9.88%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (EUR MM)

Here's what is not working for KME Group SpA

Pre-Tax Profit

At EUR -102.2 MM has Fallen at -195.84%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (EUR MM)

Debt-Equity Ratio

Highest at 569.2 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Pre-Tax Profit

Lowest at EUR -102.2 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (EUR MM)

Net Profit

Lowest at EUR -81.52 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (EUR MM)

Net Profit

Fallen at -68.7%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (EUR MM)

EPS

Lowest at EUR -0.32

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (EUR)

Cash and Eqv

Lowest at EUR 97.11 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 34.56% (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