MFO SA (MFO) 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

Bowim SA

Stalprofil SA

Izostal SA

Odlewnie Polskie SA

MOJ SA

MFO SA

Stalprodukt SA

Drozapol-Profil SA

Vistal Gdynia SA

Why is MFO SA ?

Negative results in Mar 26

NET PROFIT(HY) At PLN 1.41 MM has Grown at -70.72%
INTEREST(HY) At PLN 4.14 MM has Grown at 143.15%
OPERATING CASH FLOW(Y) Lowest at PLN -8.59 MM

With ROE of 2.78%, it has a very expensive valuation with a 0.58 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 -24.06%, its profits have risen by 19.5% ; the PEG ratio of the company is 1.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -24.06% returns in the last 1 year, the stock has also underperformed Poland WIG in each of the last 3 annual periods

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 Ferrous Metals)

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

Is MFO SA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

MFO SA

-100.0%

-0.44

35.14%

Poland WIG

29.57%

1.72

17.21%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.24%

EBIT Growth (5y)

-20.64%

EBIT to Interest (avg)

32.36

Debt to EBITDA (avg)

0.38

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

1.53

Tax Ratio

11.09%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

16.65%

ROE (avg)

12.58%

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

0.58

EV to EBIT

18.34

EV to EBITDA

11.02

EV to Capital Employed

0.66

EV to Sales

0.38

PEG Ratio

1.07

Dividend Yield

ROCE (Latest)

3.58%

ROE (Latest)

2.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-15What is not working for the Company

NET PROFIT(HY)

At PLN 1.41 MM has Grown at -70.72%

INTEREST(HY)

At PLN 4.14 MM has Grown at 143.15%

OPERATING CASH FLOW(Y)

Lowest at PLN -8.59 MM

DEBT-EQUITY RATIO (HY)

Highest at 31.73 %

RAW MATERIAL COST(Y)

Grown by 7.29% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.19 times

Here's what is working for MFO SA

Depreciation

Highest at PLN 2.64 MM

in the last five periods

MOJO Watch

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

Depreciation (PLN MM)

Here's what is not working for MFO SA

Net Profit

At PLN 1.41 MM has Grown at -70.72%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PLN MM)

Interest

At PLN 4.14 MM has Grown at 143.15%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Debt-Equity Ratio

Highest at 31.73 % and Grown

In each half year 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

Operating Cash Flow

Lowest at PLN -8.59 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PLN MM)

Debtors Turnover Ratio

Lowest at 6.19 times

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 7.29% (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