ML System SA (MLS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Saule Technologies SA

VIGO Photonics SA

XTPL SA

ML System SA

SDS Optic SA

Why is ML System SA ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

Poor long term growth as Operating profit has grown by an annual rate -254.40% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Mar 25

PRE-TAX PROFIT(Q) At PLN -16.15 MM has Fallen at -411.1%
NET PROFIT(Q) At PLN -17.35 MM has Fallen at -395.77%
ROCE(HY) Lowest at -38.59%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -25.12%, its profits have fallen by -2327%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.12% 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 Other Electrical Equipment)

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

Is ML System SA for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ML System SA

-22.89%

-0.91

73.23%

Poland WIG

39.24%

1.84

20.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.78%

EBIT Growth (5y)

-254.40%

EBIT to Interest (avg)

0.09

Debt to EBITDA (avg)

3.41

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

0.63

Tax Ratio

2.06%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.42%

ROE (avg)

1.49%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.95

EV to EBIT

-4.42

EV to EBITDA

-8.28

EV to Capital Employed

0.97

EV to Sales

1.81

PEG Ratio

Dividend Yield

ROCE (Latest)

-22.01%

ROE (Latest)

-59.06%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN 76.88 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.12%

-29What is not working for the Company

PRE-TAX PROFIT(Q)

At PLN -16.15 MM has Fallen at -411.1%

NET PROFIT(Q)

At PLN -17.35 MM has Fallen at -395.77%

ROCE(HY)

Lowest at -38.59%

RAW MATERIAL COST(Y)

Grown by 260.66% (YoY

CASH AND EQV(HY)

Lowest at PLN 9.57 MM

DEBT-EQUITY RATIO (HY)

Highest at 100.14 %

NET SALES(Q)

Lowest at PLN 18.33 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -57.61 %

Here's what is working for ML System SA

Operating Cash Flow

Highest at PLN 76.88 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PLN MM)

Inventory Turnover Ratio

Highest at 4.12%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for ML System SA

Net Sales

At PLN 18.33 MM has Fallen at -54.31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (PLN MM)

Pre-Tax Profit

At PLN -16.15 MM has Fallen at -411.1%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PLN MM)

Net Profit

At PLN -17.35 MM has Fallen at -395.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PLN MM)

Net Sales

Lowest at PLN 18.33 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PLN MM)

Operating Profit Margin

Lowest at -57.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at PLN 9.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 100.14 %

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

Raw Material Cost

Grown by 260.66% (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