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

Alligo AB

OEM International AB

Christian Berner Tech Trade AB

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MEKO AB

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Electrolux Professional AB

Teqnion AB

Momentum Group AB

BE Group AB

Haypp Group AB

Why is MEKO AB ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -15.60% of over the last 5 years
The company is Net-Debt Free
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)

Healthy long term growth as Net Sales has grown by an annual rate of 9.37%

Flat results in Mar 26

NET PROFIT(HY) At SEK 3.84 MM has Grown at -93.55%

With ROE of 1.47%, it has a fair valuation with a 0.64 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -28.92%, its profits have fallen by -86.9%

Underperformed the market in the last 1 year

Even though the market (OMX Stockholm 30) has generated returns of 28.68% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -28.92% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to MEKO AB should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is MEKO AB for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

MEKO AB

-100.0%

-0.99

37.97%

OMX Stockholm 30

28.68%

1.80

15.95%

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

0.64

EV to EBIT

31.91

EV to EBITDA

5.92

EV to Capital Employed

0.78

EV to Sales

0.41

PEG Ratio

Dividend Yield

2.33%

ROCE (Latest)

2.45%

ROE (Latest)

1.47%

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SEK 1,576 MM

RAW MATERIAL COST(Y)

Fallen by -56.9% (YoY

CASH AND EQV(HY)

Highest at SEK 1,958 MM

PRE-TAX PROFIT(Q)

At SEK 103 MM has Grown at 52.59%

NET PROFIT(Q)

Highest at SEK 72.84 MM

EPS(Q)

Highest at SEK 1.01

-8What is not working for the Company

NET PROFIT(HY)

At SEK 3.84 MM has Grown at -93.55%

Here's what is working for MEKO AB

Net Profit

At SEK 72.84 MM has Grown at 11,857.94%

over average net sales of the previous four periods of SEK 0.61 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SEK MM)

Operating Cash Flow

Highest at SEK 1,576 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SEK MM)

Pre-Tax Profit

At SEK 103 MM has Grown at 52.59%

over average net sales of the previous four periods of SEK 67.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (SEK MM)

Net Profit

Highest at SEK 72.84 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (SEK MM)

EPS

Highest at SEK 1.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (SEK)

Cash and Eqv

Highest at SEK 1,958 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -56.9% (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