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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

LC SA

Poltronic SA

ELQ SA

Grodno SA

Sunex SA

TIM SA

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 -267.00% 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 -267.00% 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 13.02 MM
RAW MATERIAL COST(Y) Grown by 17.83% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 0%

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 -53.73%, 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

-52.8%

-1.41

47.71%

Poland WIG

39.24%

1.84

20.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.77%

EBIT Growth (5y)

-267.00%

EBIT to Interest (avg)

0.54

Debt to EBITDA (avg)

5.52

Net Debt to Equity (avg)

1.08

Sales to Capital Employed (avg)

1.63

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

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

6What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

OPERATING PROFIT(Q)

Highest at PLN 20.27 MM

OPERATING PROFIT MARGIN(Q)

Highest at 35.6 %

PRE-TAX PROFIT(Q)

Highest at PLN 0 MM

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PLN 13.02 MM

RAW MATERIAL COST(Y)

Grown by 17.83% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0%

Here's what is working for LUG SA

Operating Profit

Highest at PLN 20.27 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PLN MM)

Operating Profit Margin

Highest at 35.6 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PLN 0 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PLN MM)

Pre-Tax Profit

At PLN 0 MM has Grown at 100%

over average net sales of the previous four periods of PLN -2.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PLN MM)

Here's what is not working for LUG SA

Operating Cash Flow

Lowest at PLN 13.02 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PLN MM)

Inventory Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 17.83% (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