Nestlé Pakistan Ltd. (NESTLE) 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

At-Tahur Ltd.

Al-Abbas Sugar Mills Ltd.

JDW Sugar Mills Ltd.

Habib Sugar Mills Ltd.

Frieslandcampina Engro Pakistan Ltd.

Unity Foods Ltd.

Nestlé Pakistan Ltd.

Tandlianwala Sugar Mills Ltd.

Fauji Foods Ltd.

Shakarganj Ltd.

Why is Nestlé Pakistan Ltd. ?

High Management Efficiency with a high ROE of 117.38%

Poor long term growth as Operating profit has grown by an annual rate 13.95% of over the last 5 years

Positive results in Mar 25

OPERATING CASH FLOW(Y) Highest at PKR 32,607.12 MM
DEBT-EQUITY RATIO (HY) Lowest at -1.66 %
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 63, it has a expensive valuation with a 13.5 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 0%, its profits have fallen by -6.6%

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 FMCG)

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

Is Nestlé Pakistan Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nestlé Pakistan Ltd.

-0.01%

0.00

19.84%

Pakistan KSE 100 Share

26.26%

2.81

22.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.88%

EBIT Growth (5y)

14.87%

EBIT to Interest (avg)

11.82

Debt to EBITDA (avg)

0.56

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

7.66

Tax Ratio

41.50%

Dividend Payout Ratio

146.49%

Pledged Shares

Institutional Holding

ROCE (avg)

100.65%

ROE (avg)

117.38%

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

17.49

EV to EBIT

11.44

EV to EBITDA

10.42

EV to Capital Employed

26.36

EV to Sales

1.87

PEG Ratio

0.83

Dividend Yield

3.40%

ROCE (Latest)

230.39%

ROE (Latest)

78.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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 PKR 34,928.97 MM

DEBT-EQUITY RATIO (HY)

Lowest at -57.23 %

DIVIDEND PAYOUT RATIO(Y)

Highest at 368.72%

CASH AND EQV(HY)

Highest at PKR 22,481.94 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 4.16 times

DEBTORS TURNOVER RATIO(HY)

Highest at 18.02 times

DIVIDEND PER SHARE(HY)

Highest at PKR 18.02

-2What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 15.81% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 13.19 %

Here's what is working for Nestlé Pakistan Ltd.

Operating Cash Flow

Highest at PKR 34,928.97 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 (PKR MM)

Debt-Equity Ratio

Lowest at -57.23 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at PKR 22,481.94 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 4.16 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 18.02 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at PKR 18.02

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (PKR)

Dividend Payout Ratio

Highest at 368.72%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at PKR 1,151.36 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (PKR MM)

Here's what is not working for Nestlé Pakistan Ltd.

Operating Profit Margin

Lowest at 13.19 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 15.81% (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