Macpac Films Ltd. (MACFL) 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

Tariq Glass Industries Ltd.

Ecopack Ltd.

Ghani Glass Ltd.

Tri-Pack Films Ltd.

Cherat Packaging Ltd.

Macpac Films Ltd.

Balochistan Glass Ltd.

Why is Macpac Films Ltd. ?

Poor Management Efficiency with a low ROE of 12.16%

The company has been able to generate a Return on Equity (avg) of 12.16% signifying low profitability per unit of shareholders funds

Low ability to service debt as the company has a high Debt to EBITDA ratio of 0.88 times

Low ability to service debt as the company has a high Debt to EBITDA ratio of 0.88 times
The company has been able to generate a Return on Equity (avg) of 12.16% signifying low profitability per unit of shareholders funds

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 12.16%

The company has declared Negative results for the last 5 consecutive quarters

NET PROFIT(HY) At PKR 65.39 MM has Grown at -48.8%
ROCE(HY) Lowest at 4.02%
RAW MATERIAL COST(Y) Grown by 7.81% (YoY)

With ROE of 3.9, it has a expensive valuation with a 0.5 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 0%, its profits have fallen by -73.1%
At the current price, the company has a high dividend yield of 6.7

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 Packaging)

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

Is Macpac Films Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Macpac Films Ltd.

22.71%

0.03

35.42%

Pakistan KSE 100 Share

60.28%

2.81

22.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.46%

EBIT Growth (5y)

19.24%

EBIT to Interest (avg)

3.72

Debt to EBITDA (avg)

0.88

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

2.19

Tax Ratio

30.07%

Dividend Payout Ratio

34.77%

Pledged Shares

Institutional Holding

ROCE (avg)

21.52%

ROE (avg)

12.16%

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

0.73

EV to EBIT

21.09

EV to EBITDA

10.42

EV to Capital Employed

0.81

EV to Sales

0.41

PEG Ratio

Dividend Yield

1.80%

ROCE (Latest)

3.82%

ROE (Latest)

3.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at PKR 359.19 MM

NET SALES(Q)

Highest at PKR 1,540.88 MM

-11What is not working for the Company

NET PROFIT(HY)

At PKR 65.39 MM has Grown at -48.8%

ROCE(HY)

Lowest at 4.02%

RAW MATERIAL COST(Y)

Grown by 7.81% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 22.9 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.15%

Here's what is working for Macpac Films Ltd.

Operating Cash Flow

Highest at PKR 359.19 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PKR MM)

Net Sales

Highest at PKR 1,540.88 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Depreciation

Highest at PKR 41.73 MM

in the last five periods

MOJO Watch

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

Depreciation (PKR MM)

Depreciation

At PKR 41.73 MM has Grown at inf%

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 (PKR MM)

Here's what is not working for Macpac Films Ltd.

Net Profit

At PKR 65.39 MM has Grown at -48.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

Debt-Equity Ratio

Highest at 22.9 %

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

Debtors Turnover Ratio

Lowest at 6.15%

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 7.81% (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