Nam Mekong Group JSC (VC3) 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

Hudland Real Estate Investment & Development JSC

Lam Dong Minerals & Building Materials JSC

No Va Land Investment Group Corp.

Ninh Van Bay Real Estate JSC

Nam Mekong Group JSC

Khang Dien House Trading & Investment JSC

Kinh Bac City Development Holding Corp.

Investment & Industrial Development Corp.

Licogi 14 JSC

Why is Nam Mekong Group JSC ?

Poor Management Efficiency with a low ROE of 6.65%

The company has been able to generate a Return on Equity (avg) of 6.65% signifying low profitability per unit of shareholders funds

Negative results in Mar 26

NET SALES(HY) At VND 178,341.4 MM has Grown at -32.52%
DEBTORS TURNOVER RATIO(HY) Lowest at 1.43 times
DEBT-EQUITY RATIO (HY) Highest at 36.7 %

With ROE of 8.20%, it has a expensive valuation with a 2.45 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -2.39%, its profits have risen by 98.8% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

Even though the market (Vietnam VN Ho Chi Minh Index) has generated returns of 16.53% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -2.39% returns

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 Furniture, Home Furnishing)

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

Is Nam Mekong Group JSC for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nam Mekong Group JSC

-2.39%

0.10

20.28%

Vietnam VN Ho Chi Minh Index

16.53%

0.77

21.36%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

38.91%

EBIT Growth (5y)

79.01%

EBIT to Interest (avg)

83.09

Debt to EBITDA (avg)

0.75

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

0.45

Tax Ratio

19.49%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.09%

ROE (avg)

6.65%

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

2.45

EV to EBIT

28.81

EV to EBITDA

27.80

EV to Capital Employed

2.06

EV to Sales

7.08

PEG Ratio

0.36

Dividend Yield

0.60%

ROCE (Latest)

7.16%

ROE (Latest)

8.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

11What is working for the Company

PRE-TAX PROFIT(Q)

At VND 24,639.01 MM has Grown at 184.38%

NET PROFIT(Q)

At VND 19,301.99 MM has Grown at 195.81%

RAW MATERIAL COST(Y)

Fallen by -148.94% (YoY

-17What is not working for the Company

NET SALES(HY)

At VND 178,341.4 MM has Grown at -32.52%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.43 times

DEBT-EQUITY RATIO (HY)

Highest at 36.7 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.22 times

INTEREST(Q)

Highest at VND 237.13 MM

Here's what is working for Nam Mekong Group JSC

Pre-Tax Profit

At VND 24,639.01 MM has Grown at 184.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (VND MM)

Net Profit

At VND 19,301.99 MM has Grown at 195.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (VND MM)

Raw Material Cost

Fallen by -148.94% (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 Nam Mekong Group JSC

Net Sales

At VND 178,341.4 MM has Grown at -32.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (VND MM)

Interest

At VND 237.13 MM has Grown at 34.85%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (VND MM)

Debtors Turnover Ratio

Lowest at 1.43 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at VND 237.13 MM

in the last five periods and Increased by 34.85% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (VND MM)

Debt-Equity Ratio

Highest at 36.7 %

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

Inventory Turnover Ratio

Lowest at 0.22 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio