Lentex SA (LTX) 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

Novita SA

Lentex SA

Harper Hygienics SA

Why is Lentex SA ?

Poor Management Efficiency with a low ROE of 11.56%

The company has been able to generate a Return on Equity (avg) of 11.56% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with a -17.26% CAGR growth in Operating Profits over the last 5 years

The company has been able to generate a Return on Equity (avg) of 11.56% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -4.98% and Operating profit at -17.26% over the last 5 years

RAW MATERIAL COST(Y) Fallen by -17.85% (YoY)
CASH AND EQV(HY) Highest at PLN 102.36 MM
DEBT-EQUITY RATIO (HY) Lowest at -12.76 %

With ROE of 7.99%, it has a expensive valuation with a 1.19 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.84%, its profits have fallen by -16.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.84% returns in the last 1 year, the stock has also underperformed Poland WIG in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Lentex SA should be less than 10%
Overall Portfolio exposure to Garments & Apparels should be less than 30%

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

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

Is Lentex SA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lentex SA

-100.0%

0.51

29.52%

Poland WIG

43.29%

2.67

16.21%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.98%

EBIT Growth (5y)

-17.26%

EBIT to Interest (avg)

19.88

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

1.24

Tax Ratio

13.13%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.14%

ROCE (avg)

13.09%

ROE (avg)

11.56%

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

1.19

EV to EBIT

11.58

EV to EBITDA

7.14

EV to Capital Employed

1.23

EV to Sales

0.87

PEG Ratio

Dividend Yield

42.79%

ROCE (Latest)

10.62%

ROE (Latest)

7.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -17.85% (YoY

CASH AND EQV(HY)

Highest at PLN 102.36 MM

DEBT-EQUITY RATIO (HY)

Lowest at -12.76 %

NET SALES(Q)

Highest at PLN 85.16 MM

OPERATING PROFIT(Q)

Highest at PLN 14.54 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.07 %

PRE-TAX PROFIT(Q)

Highest at PLN 11.23 MM

NET PROFIT(Q)

Highest at PLN 6.77 MM

EPS(Q)

Highest at PLN 0.2

-3What is not working for the Company

INTEREST(HY)

At PLN 0.62 MM has Grown at 63.61%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.87 times

Here's what is working for Lentex SA

Net Sales

Highest at PLN 85.16 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PLN MM)

Operating Profit

Highest at PLN 14.54 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PLN MM)

Operating Profit Margin

Highest at 17.07 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PLN 11.23 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PLN MM)

Net Profit

Highest at PLN 6.77 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PLN MM)

EPS

Highest at PLN 0.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PLN)

Cash and Eqv

Highest at PLN 102.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -12.76 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -17.85% (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 PLN 3.66 MM

in the last five periods

MOJO Watch

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

Depreciation (PLN MM)

Here's what is not working for Lentex SA

Interest

At PLN 0.62 MM has Grown at 63.61%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Debtors Turnover Ratio

Lowest at 4.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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