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

Harper Hygienics SA

Novita SA

Lentex SA

Why is Lentex SA ?

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

Negative results in Mar 26

OPERATING CASH FLOW(Y) Lowest at PLN 30.76 MM
ROCE(HY) Lowest at 5.32%
INTEREST COVERAGE RATIO(Q) Lowest at 2,376.19

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 -2.19%, its profits have fallen by -16.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.19% 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 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 Garments & Apparels)

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

Is Lentex SA for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Lentex SA

-2.98%

0.44

24.04%

Poland WIG

29.57%

1.74

17.24%

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)

23.79

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

13.12%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.14%

ROCE (avg)

14.95%

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.95% (YoY

CASH AND EQV(HY)

Highest at PLN 96.01 MM

DEBT-EQUITY RATIO (HY)

Lowest at -8.73 %

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PLN 30.76 MM

ROCE(HY)

Lowest at 5.32%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,376.19

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.65 times

NET SALES(Q)

At PLN 68.75 MM has Fallen at -10.71%

OPERATING PROFIT(Q)

Lowest at PLN 5.49 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.98 %

PRE-TAX PROFIT(Q)

Lowest at PLN 2.43 MM

NET PROFIT(Q)

Lowest at PLN 2.66 MM

Here's what is working for Lentex SA

Cash and Eqv

Highest at PLN 96.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -8.73 %

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 -2.95% (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 Lentex SA

Operating Cash Flow

Lowest at PLN 30.76 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PLN MM)

Interest Coverage Ratio

Lowest at 2,376.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At PLN 2.43 MM has Fallen at -66.08%

over average net sales of the previous four periods of PLN 7.17 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PLN MM)

Net Sales

At PLN 68.75 MM has Fallen at -10.71%

over average net sales of the previous four periods of PLN 77 MM

MOJO Watch

Near term sales trend is negative

Net Sales (PLN MM)

Operating Profit

Lowest at PLN 5.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PLN MM)

Operating Profit Margin

Lowest at 7.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at PLN 2.43 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PLN MM)

Net Profit

Lowest at PLN 2.66 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PLN MM)

Net Profit

At PLN 2.66 MM has Fallen at -40.3%

over average net sales of the previous four periods of PLN 4.45 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PLN MM)

Inventory Turnover Ratio

Lowest at 2.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio