Mennica Polska SA (MNC) 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

Mennica Polska SA

Sanok Rubber Company SA

M4B SA

Why is Mennica Polska SA ?

Low Debt Company with Strong Long Term Fundamental Strength

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 15.94

Flat results in Jun 25

INTEREST(Q) At PLN 3.32 MM has Grown at 27.02%
RAW MATERIAL COST(Y) Grown by 43.4% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 2%

With ROE of 10.72%, it has a fair valuation with a 2.35 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 118.64%, its profits have fallen by -40.9%

Market Beating performance in long term as well as near term

Along with generating 118.64% returns in the last 1 year, the stock has outperformed Poland WIG in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mennica Polska SA should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Mennica Polska SA for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Mennica Polska SA

-100.0%

3.90

36.35%

Poland WIG

34.87%

1.84

20.56%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.43%

EBIT Growth (5y)

18.02%

EBIT to Interest (avg)

15.94

Debt to EBITDA (avg)

0.15

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

1.62

Tax Ratio

19.29%

Dividend Payout Ratio

72.10%

Pledged Shares

Institutional Holding

ROCE (avg)

15.45%

ROE (avg)

11.60%

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

2.35

EV to EBIT

19.71

EV to EBITDA

15.62

EV to Capital Employed

2.35

EV to Sales

1.12

PEG Ratio

Dividend Yield

3.38%

ROCE (Latest)

11.94%

ROE (Latest)

10.72%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN 132.94 MM

ROCE(HY)

Highest at 16.23%

NET SALES(Q)

Highest at PLN 409.31 MM

-8What is not working for the Company

INTEREST(Q)

At PLN 3.32 MM has Grown at 27.02%

RAW MATERIAL COST(Y)

Grown by 43.4% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2%

OPERATING PROFIT(Q)

Lowest at PLN 24.11 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.89 %

Here's what is working for Mennica Polska SA

Operating Cash Flow

Highest at PLN 132.94 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PLN MM)

Net Sales

Highest at PLN 409.31 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PLN MM)

Here's what is not working for Mennica Polska SA

Interest

At PLN 3.32 MM has Grown at 27.02%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Operating Profit

Lowest at PLN 24.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PLN MM)

Operating Profit Margin

Lowest at 5.89 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 2%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 43.4% (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