Nemak SAB de CV (NEMAKA) 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

Nemak SAB de CV

Grupo Industrial Saltillo SA de CV

Why is Nemak SAB de CV ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.32% and Operating profit at -5.83% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 3.12% signifying low profitability per unit of shareholders funds

Flat results in Jun 26

INTEREST(Q) At MXN 649.36 MM has Grown at 24.79%
RAW MATERIAL COST(Y) Grown by 5.48% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 104.92 %

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 -21.63%, its profits have fallen by -214.1%

Below par performance in long term as well as near term

Along with generating -21.63% returns in the last 1 year, the stock has also underperformed Mexico IPC in the last 3 years, 1 year and 3 months

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 Auto Components & Equipments)

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

Is Nemak SAB de CV for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nemak SAB de CV

-100.0%

-0.13

25.72%

Mexico IPC

14.41%

0.77

19.31%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.32%

EBIT Growth (5y)

-5.83%

EBIT to Interest (avg)

1.69

Debt to EBITDA (avg)

2.55

Net Debt to Equity (avg)

0.84

Sales to Capital Employed (avg)

1.37

Tax Ratio

18.65%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.60%

ROCE (avg)

6.24%

ROE (avg)

3.12%

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

0.32

EV to EBIT

14.88

EV to EBITDA

3.89

EV to Capital Employed

0.66

EV to Sales

0.43

PEG Ratio

Dividend Yield

ROCE (Latest)

4.44%

ROE (Latest)

-4.91%

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

OBV

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at MXN 13,025.2 MM

NET PROFIT(HY)

Higher at MXN 135.69 MM

NET SALES(Q)

Highest at MXN 26,161.37 MM

PRE-TAX PROFIT(Q)

At MXN -43.63 MM has Grown at 90.72%

-4What is not working for the Company

INTEREST(Q)

At MXN 649.36 MM has Grown at 24.79%

RAW MATERIAL COST(Y)

Grown by 5.48% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 104.92 %

Here's what is working for Nemak SAB de CV

Operating Cash Flow

Highest at MXN 13,025.2 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (MXN MM)

Net Profit

Higher at MXN 135.69 MM

than preceding 12 month period ended Jun 2026

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (MXN MM)

Net Profit

At MXN 135.69 MM has Grown at 116.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (MXN MM)

Net Sales

Highest at MXN 26,161.37 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (MXN MM)

Pre-Tax Profit

At MXN -43.63 MM has Grown at 90.72%

over average net sales of the previous four periods of MXN -470.01 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (MXN MM)

Here's what is not working for Nemak SAB de CV

Interest

At MXN 649.36 MM has Grown at 24.79%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Debt-Equity Ratio

Highest at 104.92 %

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 5.48% (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