Mercantile Shipping Co. Plc (MSL.N0000) 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

Mercantile Shipping Co. Plc

Why is Mercantile Shipping Co. Plc ?

Flat results in Dec 25

OPERATING PROFIT(Q) Lowest at LKR -0.1 MM
OPERATING PROFIT MARGIN(Q) Lowest at -1.8 %
PRE-TAX PROFIT(Q) Lowest at LKR 0.07 MM

With ROE of 0.63%, it has a very expensive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of 31.35%, its profits have risen by 117.1%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mercantile Shipping Co. Plc should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

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

Is Mercantile Shipping Co. Plc for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Mercantile Shipping Co. Plc

31.35%

0.43

88.36%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.26%

EBIT Growth (5y)

11.67%

EBIT to Interest (avg)

-2.88

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.62

Sales to Capital Employed (avg)

0.25

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.01%

ROE (avg)

1.24%

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

EV to EBIT

15.81

EV to EBITDA

48.11

EV to Capital Employed

-1.65

EV to Sales

-2.22

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

0.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

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

8What is working for the Company

ROCE(HY)

Highest at 0.74%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

NET PROFIT(9M)

Higher at LKR -0.17 MM

CASH AND EQV(HY)

Highest at LKR 99.55 MM

DEBT-EQUITY RATIO (HY)

Lowest at -66.15 %

-11What is not working for the Company

OPERATING PROFIT(Q)

Lowest at LKR -0.1 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.8 %

PRE-TAX PROFIT(Q)

Lowest at LKR 0.07 MM

NET PROFIT(Q)

Lowest at LKR -0.48 MM

EPS(Q)

Lowest at LKR -0.17

Here's what is working for Mercantile Shipping Co. Plc

Cash and Eqv

Highest at LKR 99.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -66.15 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 0% (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 Mercantile Shipping Co. Plc

Pre-Tax Profit

At LKR 0.07 MM has Fallen at -89.04%

over average net sales of the previous four periods of LKR 0.63 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR -0.48 MM has Fallen at -203.02%

over average net sales of the previous four periods of LKR 0.47 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Operating Profit

Lowest at LKR -0.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (LKR MM)

Operating Profit Margin

Lowest at -1.8 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at LKR 0.07 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Net Profit

Lowest at LKR -0.48 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

EPS

Lowest at LKR -0.17

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)