LUG SA (LUG) 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

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APS Energia SA

Govena Lighting SA

LUG SA

Why is LUG SA ?

Poor Management Efficiency with a low ROCE of 3.19%

The company has been able to generate a Return on Capital Employed (avg) of 3.19% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -238.26% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.97% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -238.26% of over the last 5 years

The company has declared negative results for the last 4 consecutive quarters

The company has declared negative results in Mar 24 after 3 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at PLN 0.32 MM
ROCE(HY) Lowest at -43.27%
CASH AND EQV(HY) Lowest at PLN 3.1 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -60.25%, its profits have fallen by -817.9%

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 Electronics & Appliances)

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

Is LUG SA for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

LUG SA

-60.25%

-1.25

59.04%

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)

-0.27%

EBIT Growth (5y)

-238.26%

EBIT to Interest (avg)

0.54

Debt to EBITDA (avg)

5.52

Net Debt to Equity (avg)

1.08

Sales to Capital Employed (avg)

1.62

Tax Ratio

1.15%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.19%

ROE (avg)

5.97%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.40

EV to EBIT

-23.41

EV to EBITDA

11.99

EV to Capital Employed

0.73

EV to Sales

0.45

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.11%

ROE (Latest)

-12.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -8.47% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.97 times

-37What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PLN 0.32 MM

ROCE(HY)

Lowest at -43.27%

CASH AND EQV(HY)

Lowest at PLN 3.1 MM

DEBT-EQUITY RATIO (HY)

Highest at 180.12 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.84 times

NET SALES(Q)

Lowest at PLN 34.92 MM

OPERATING PROFIT(Q)

Lowest at PLN -8.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -23.2 %

PRE-TAX PROFIT(Q)

Lowest at PLN -11.42 MM

NET PROFIT(Q)

Lowest at PLN -10.65 MM

EPS(Q)

Lowest at PLN -1.48

Here's what is working for LUG SA

Debtors Turnover Ratio

Highest at 4.97 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 -8.47% (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 4.31 MM

in the last five periods

MOJO Watch

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

Depreciation (PLN MM)

Depreciation

At PLN 4.31 MM has Grown at 84.49%

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 (PLN MM)

Here's what is not working for LUG SA

Net Sales

At PLN 34.92 MM has Fallen at -32.27%

over average net sales of the previous four periods of PLN 51.56 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (PLN MM)

Pre-Tax Profit

At PLN -11.42 MM has Fallen at -142.92%

over average net sales of the previous four periods of PLN -4.7 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PLN MM)

Net Profit

At PLN -10.65 MM has Fallen at -155.18%

over average net sales of the previous four periods of PLN -4.17 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PLN MM)

Operating Cash Flow

Lowest at PLN 0.32 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PLN MM)

Net Sales

Lowest at PLN 34.92 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PLN MM)

Operating Profit

Lowest at PLN -8.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PLN MM)

Operating Profit Margin

Lowest at -23.2 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at PLN -11.42 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 -10.65 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PLN MM)

EPS

Lowest at PLN -1.48

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PLN)

Cash and Eqv

Lowest at PLN 3.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 180.12 %

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 1.84 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio