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 ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 8.29% and Operating profit at 10.56% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
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 Sep 25

NET PROFIT(HY) At MXN -6.41 MM has Grown at -100.73%
ROCE(HY) Lowest at -3.93%
RAW MATERIAL COST(Y) Grown by 26.54% (YoY)

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 29.57%, its profits have fallen by -257.3%

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nemak SAB de CV

29.57%

0.49

31.28%

Mexico IPC

31.4%

1.71

18.32%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.29%

EBIT Growth (5y)

10.56%

EBIT to Interest (avg)

2.25

Debt to EBITDA (avg)

2.32

Net Debt to Equity (avg)

0.84

Sales to Capital Employed (avg)

1.39

Tax Ratio

76.55%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.60%

ROCE (avg)

7.63%

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

8.21

EV to EBITDA

3.11

EV to Capital Employed

0.63

EV to Sales

0.40

PEG Ratio

Dividend Yield

ROCE (Latest)

7.68%

ROE (Latest)

-5.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at MXN 9,877.79 MM

DEBT-EQUITY RATIO (HY)

Lowest at 87.94 %

PRE-TAX PROFIT(Q)

At MXN -66.54 MM has Grown at 73.54%

NET PROFIT(Q)

Highest at MXN 459.25 MM

EPS(Q)

Highest at MXN 0.16

-14What is not working for the Company

NET PROFIT(HY)

At MXN -6.41 MM has Grown at -100.73%

ROCE(HY)

Lowest at -3.93%

RAW MATERIAL COST(Y)

Grown by 26.54% (YoY

NET SALES(Q)

Lowest at MXN 22,856.09 MM

OPERATING PROFIT(Q)

Lowest at MXN 2,586.78 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.32 %

Here's what is working for Nemak SAB de CV

Net Profit

At MXN 459.25 MM has Grown at 206.96%

over average net sales of the previous four periods of MXN -429.35 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (MXN MM)

Operating Cash Flow

Highest at MXN 9,877.79 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (MXN MM)

Pre-Tax Profit

At MXN -66.54 MM has Grown at 73.54%

over average net sales of the previous four periods of MXN -251.42 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (MXN MM)

Net Profit

Highest at MXN 459.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (MXN MM)

EPS

Highest at MXN 0.16

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (MXN)

Debt-Equity Ratio

Lowest at 87.94 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

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

Net Sales

Lowest at MXN 22,856.09 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (MXN MM)

Operating Profit

Lowest at MXN 2,586.78 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (MXN MM)

Operating Profit Margin

Lowest at 11.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 26.54% (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