Norte 19 (HCITY*) 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

Grupo Posadas, SAB de CV

Grupo Hotelero Santa Fe SAB de CV

Grupe SAB de CV

Norte 19

Why is Norte 19 ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.67%

Poor long term growth as Operating profit has grown by an annual rate 30.58% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Negative results in Sep 25

ROCE(HY) Lowest at -2.65%
CASH AND EQV(HY) Lowest at MXN 1,016.9 MM
DEBT-EQUITY RATIO (HY) Highest at 63.12 %

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 32.04%, its profits have fallen by -101.3%

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 Hotels & Resorts)

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

Is Norte 19 for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Norte 19

32.04%

1.33

34.97%

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)

16.94%

EBIT Growth (5y)

30.58%

EBIT to Interest (avg)

0.42

Debt to EBITDA (avg)

126.45

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

0.34

Tax Ratio

72.11%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

3.67%

ROE (avg)

0.45%

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

0.30

EV to EBIT

12.36

EV to EBITDA

6.41

EV to Capital Employed

0.54

EV to Sales

1.38

PEG Ratio

Dividend Yield

ROCE (Latest)

4.36%

ROE (Latest)

-0.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at MXN 473.38 MM

INTEREST COVERAGE RATIO(Q)

Highest at 195.71

RAW MATERIAL COST(Y)

Fallen by -32.61% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 9.56 times

NET SALES(Q)

Highest at MXN 1,079.88 MM

-21What is not working for the Company

ROCE(HY)

Lowest at -2.65%

CASH AND EQV(HY)

Lowest at MXN 1,016.9 MM

DEBT-EQUITY RATIO (HY)

Highest at 63.12 %

PRE-TAX PROFIT(Q)

Lowest at MXN -72.89 MM

NET PROFIT(Q)

Lowest at MXN -94.22 MM

EPS(Q)

Lowest at MXN -0.44

Here's what is working for Norte 19

Interest Coverage Ratio

Highest at 195.71

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at MXN 473.38 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (MXN MM)

Net Sales

Highest at MXN 1,079.88 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (MXN MM)

Debtors Turnover Ratio

Highest at 9.56 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -32.61% (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 Norte 19

Pre-Tax Profit

At MXN -72.89 MM has Fallen at -793.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (MXN MM)

Net Profit

At MXN -94.22 MM has Fallen at -253.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (MXN MM)

Pre-Tax Profit

Lowest at MXN -72.89 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (MXN MM)

Net Profit

Lowest at MXN -94.22 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (MXN MM)

EPS

Lowest at MXN -0.44

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (MXN)

Cash and Eqv

Lowest at MXN 1,016.9 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 63.12 %

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