Nafoods Group JSC (NAF) 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

Bibica Corp.

Nafoods Group JSC

Travel Investment & Seafood Development Corp.

Bich Chi Food Co.

KIDO Group Corp.

Masan Group Corp.

Long An Food Processing Export JSC

Haiha Confectionery JSC

Why is Nafoods Group JSC ?

Poor Management Efficiency with a low ROCE of 9.04%

The company has been able to generate a Return on Capital Employed (avg) of 9.04% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate 13.32% of over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

PRE-TAX PROFIT(Q) At VND 17,619.7 MM has Fallen at -50.93%
NET PROFIT(Q) At VND 12,910.53 MM has Fallen at -56.49%
NET SALES(9M) At VND 1,036,011.44 MM has Grown at -13.3%

With ROE of 12.20%, it has a fair valuation with a 2.00 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 92.08%, its profits have risen by 11.3% ; the PEG ratio of the company is 14

Consistent Returns over the last 3 years

Along with generating 92.08% returns in the last 1 year, the stock has outperformed Vietnam VN Ho Chi Minh Index in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Nafoods Group JSC should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Nafoods Group JSC for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Nafoods Group JSC

92.08%

3.28

29.94%

Vietnam VN Ho Chi Minh Index

29.95%

1.61

21.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.32%

EBIT Growth (5y)

13.32%

EBIT to Interest (avg)

2.61

Debt to EBITDA (avg)

3.37

Net Debt to Equity (avg)

0.86

Sales to Capital Employed (avg)

0.92

Tax Ratio

17.91%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.04%

ROE (avg)

10.07%

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

2.00

EV to EBIT

16.43

EV to EBITDA

10.68

EV to Capital Employed

1.52

EV to Sales

1.75

PEG Ratio

13.97

Dividend Yield

0.25%

ROCE (Latest)

9.27%

ROE (Latest)

12.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

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

4What is working for the Company

NET PROFIT(HY)

At VND 38,880.35 MM has Grown at 40.6%

ROCE(HY)

Highest at 11.82%

-15What is not working for the Company

PRE-TAX PROFIT(Q)

At VND 17,619.7 MM has Fallen at -50.93%

NET PROFIT(Q)

At VND 12,910.53 MM has Fallen at -56.49%

NET SALES(9M)

At VND 1,036,011.44 MM has Grown at -13.3%

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.41%

RAW MATERIAL COST(Y)

Grown by 48.53% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 85.57 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.5%

OPERATING PROFIT MARGIN(Q)

Lowest at 14.23 %

Here's what is not working for Nafoods Group JSC

Pre-Tax Profit

At VND 17,619.7 MM has Fallen at -50.93%

over average net sales of the previous four periods of VND 35,909.44 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (VND MM)

Net Profit

At VND 12,910.53 MM has Fallen at -56.49%

over average net sales of the previous four periods of VND 29,674.22 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (VND MM)

Inventory Turnover Ratio

Lowest at 4.41% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

At VND 1,036,011.44 MM has Grown at -13.3%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (VND MM)

Operating Profit Margin

Lowest at 14.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at VND 12,910.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (VND MM)

Debt-Equity Ratio

Highest at 85.57 %

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

Debtors Turnover Ratio

Lowest at 2.5%

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 48.53% (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