LPP SA (LPP) 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

CCC SA

MONNARI TRADE SA

CDRL SA

ESOTIQ & Henderson SA

LPP SA

Hurtimex SA

Solar Co. SA

Why is LPP SA ?

The company has declared negative results in Jan'2025 after 6 consecutive positive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 857.43
INTEREST(HY) At PLN 199 MM has Grown at 85.98%
ROCE(HY) Lowest at 25.18%

With ROE of 36.74%, it has a fair valuation with a 6.38 Price to Book Value

Over the past year, while the stock has generated a return of 21.09%, its profits have risen by 1.4% ; the PEG ratio of the company is 12.8

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 Footwear)

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

Is LPP SA for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

LPP SA

21.09%

0.72

35.23%

Poland WIG

27.62%

1.38

19.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.11%

EBIT Growth (5y)

110.82%

EBIT to Interest (avg)

8.37

Debt to EBITDA (avg)

0.15

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

2.70

Tax Ratio

22.39%

Dividend Payout Ratio

70.10%

Pledged Shares

Institutional Holding

0.05%

ROCE (avg)

39.07%

ROE (avg)

24.35%

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

6.38

EV to EBIT

14.49

EV to EBITDA

7.98

EV to Capital Employed

4.78

EV to Sales

1.56

PEG Ratio

12.82

Dividend Yield

3.92%

ROCE (Latest)

32.95%

ROE (Latest)

36.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Bullish

OBV

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 -5.11% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 25.22 times

NET SALES(Q)

Highest at PLN 6,141 MM

-25What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 857.43

INTEREST(HY)

At PLN 199 MM has Grown at 85.98%

ROCE(HY)

Lowest at 25.18%

OPERATING PROFIT(Q)

Lowest at PLN 866 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.1 %

DEBT-EQUITY RATIO (HY)

Highest at 115.1 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.72 times

PRE-TAX PROFIT(Q)

Lowest at PLN 225 MM

NET PROFIT(Q)

Lowest at PLN -16.12 MM

EPS(Q)

Lowest at PLN -9.7

Here's what is working for LPP SA

Net Sales

Highest at PLN 6,141 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PLN MM)

Debtors Turnover Ratio

Highest at 25.22 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.11% (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 530 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 LPP SA

Interest Coverage Ratio

Lowest at 857.43 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At PLN -16.12 MM has Fallen at -102.84%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PLN MM)

Operating Profit

Lowest at PLN 866 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (PLN MM)

Operating Profit Margin

Lowest at 14.1 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At PLN 225 MM has Fallen at -68.27%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PLN MM)

Interest

At PLN 199 MM has Grown at 85.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Pre-Tax Profit

Lowest at PLN 225 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 -16.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PLN MM)

EPS

Lowest at PLN -9.7

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PLN)

Debt-Equity Ratio

Highest at 115.1 %

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

Inventory Turnover Ratio

Lowest at 2.72 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio