Novita SA (NVT) 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

Harper Hygienics SA

Novita SA

Lentex SA

Why is Novita SA ?

Weak Long Term Fundamental Strength with a -18.69% CAGR growth in Operating Profits over the last 5 years

Poor long term growth as Operating profit has grown by an annual rate -18.69% of over the last 5 years

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 1,310.74
INVENTORY TURNOVER RATIO(HY) Lowest at 3.53 times
PRE-TAX PROFIT(Q) Lowest at PLN 5.16 MM

With ROE of 15.24%, it has a very expensive valuation with a 2.03 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 -4.27%, its profits have fallen by -17.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.27% returns in the last 1 year, the stock has also underperformed Poland WIG in each of the last 3 annual periods

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 Garments & Apparels)

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

Is Novita SA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Novita SA

-2.6%

-0.39

34.22%

Poland WIG

37.09%

2.22

16.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.88%

EBIT Growth (5y)

-18.69%

EBIT to Interest (avg)

24.68

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.45

Tax Ratio

17.29%

Dividend Payout Ratio

99.94%

Pledged Shares

Institutional Holding

ROCE (avg)

23.13%

ROE (avg)

22.73%

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

2.03

EV to EBIT

10.98

EV to EBITDA

9.05

EV to Capital Employed

2.11

EV to Sales

1.40

PEG Ratio

Dividend Yield

15.46%

ROCE (Latest)

19.21%

ROE (Latest)

15.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN 32.87 MM

RAW MATERIAL COST(Y)

Fallen by -11.51% (YoY

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 1,310.74

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.53 times

PRE-TAX PROFIT(Q)

Lowest at PLN 5.16 MM

NET PROFIT(Q)

Lowest at PLN 4.21 MM

EPS(Q)

Lowest at PLN 1.69

Here's what is working for Novita SA

Operating Cash Flow

Highest at PLN 32.87 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PLN MM)

Raw Material Cost

Fallen by -11.51% (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 Novita SA

Interest Coverage Ratio

Lowest at 1,310.74

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at PLN 5.16 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PLN MM)

Net Profit

Lowest at PLN 4.21 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PLN MM)

EPS

Lowest at PLN 1.69

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PLN)

Inventory Turnover Ratio

Lowest at 3.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio