MEKO AB (MEKO) 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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Bufab AB

Beijer Ref AB

Haypp Group AB

MEKO AB

BE Group AB

Why is MEKO AB ?

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 -15.60% 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 Capital Employed (avg) of 6.10% signifying low profitability per unit of total capital (equity and debt)

With a fall in Net Sales of -0.57%, the company declared Very Negative results in Dec 25

The company has declared negative results in Dec 24 after 2 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at SEK 1,013 MM
ROCE(HY) Lowest at 0.58%
INTEREST COVERAGE RATIO(Q) Lowest at 255.14

Below par performance in long term as well as near term

Along with generating -44.38% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in the last 3 years, 1 year and 3 months

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 Trading & Distributors)

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

Is MEKO AB for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

MEKO AB

-100.0%

-1.17

38.14%

OMX Stockholm 30

11.31%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.37%

EBIT Growth (5y)

-15.60%

EBIT to Interest (avg)

3.45

Debt to EBITDA (avg)

2.51

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

1.71

Tax Ratio

27.17%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

1.36%

ROCE (avg)

6.10%

ROE (avg)

10.12%

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

0.69

EV to EBIT

23.76

EV to EBITDA

6.13

EV to Capital Employed

0.81

EV to Sales

0.46

PEG Ratio

Dividend Yield

2.05%

ROCE (Latest)

3.43%

ROE (Latest)

6.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.59% (YoY

-27What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 1,013 MM

ROCE(HY)

Lowest at 0.58%

INTEREST COVERAGE RATIO(Q)

Lowest at 255.14

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.51 times

DIVIDEND PER SHARE(HY)

Lowest at SEK 7.21

OPERATING PROFIT(Q)

Lowest at SEK 273 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.05 %

PRE-TAX PROFIT(Q)

Lowest at SEK 2 MM

NET PROFIT(Q)

Lowest at SEK -11 MM

EPS(Q)

Lowest at SEK -0.2

Here's what is working for MEKO AB

Raw Material Cost

Fallen by -1.59% (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 MEKO AB

Pre-Tax Profit

At SEK 2 MM has Fallen at -96.99%

over average net sales of the previous four periods of SEK 66.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK -11 MM has Fallen at -166.23%

over average net sales of the previous four periods of SEK 16.61 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Interest Coverage Ratio

Lowest at 255.14

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at SEK 1,013 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Operating Profit

Lowest at SEK 273 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at 6.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SEK 2 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Net Profit

Lowest at SEK -11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

EPS

Lowest at SEK -0.2

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SEK)

Inventory Turnover Ratio

Lowest at 3.51 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at SEK 7.21

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (SEK)

Non Operating Income

Highest at SEK 46 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income