NEUCA SA (NEU) 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

Mercator Medical SA

NEUCA SA

Why is NEUCA SA ?

High Management Efficiency with a high ROCE of 22.28%

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

Poor long term growth as Operating profit has grown by an annual rate 1.95% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 1.95% of over the last 5 years

Positive results in Mar 25

RAW MATERIAL COST(Y) Fallen by -1.24% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 7.85%
NET SALES(Q) Highest at PLN 3,365.89 MM

With ROE of 13.62%, it has a very expensive valuation with a 3.13 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -7.82%, its profits have fallen by -20.1%

Underperformed the market in the last 1 year

Even though the market (Poland WIG) has generated returns of 37.76% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -7.82% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to NEUCA SA should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is NEUCA SA for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

NEUCA SA

-7.3%

-0.51

24.01%

Poland WIG

39.24%

1.84

20.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.19%

EBIT Growth (5y)

1.95%

EBIT to Interest (avg)

6.45

Debt to EBITDA (avg)

0.55

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

7.89

Tax Ratio

25.12%

Dividend Payout Ratio

46.32%

Pledged Shares

Institutional Holding

ROCE (avg)

22.28%

ROE (avg)

15.97%

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

3.13

EV to EBIT

14.39

EV to EBITDA

9.75

EV to Capital Employed

2.52

EV to Sales

0.29

PEG Ratio

Dividend Yield

2.14%

ROCE (Latest)

17.54%

ROE (Latest)

13.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.24% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 7.85%

NET SALES(Q)

Highest at PLN 3,365.89 MM

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PLN 50.28 MM

ROCE(HY)

Lowest at 13.12%

INTEREST(Q)

At PLN 21.33 MM has Grown at 46.85%

DEBT-EQUITY RATIO (HY)

Highest at 52.18 %

Here's what is working for NEUCA SA

Net Sales

Highest at PLN 3,365.89 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PLN MM)

Inventory Turnover Ratio

Highest at 7.85%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -1.24% (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

Depreciation

Highest at PLN 31.24 MM

in the last five periods

MOJO Watch

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

Depreciation (PLN MM)

Here's what is not working for NEUCA SA

Operating Cash Flow

Lowest at PLN 50.28 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PLN MM)

Interest

At PLN 21.33 MM has Grown at 46.85%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Debt-Equity Ratio

Highest at 52.18 %

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