Octopus Digital Ltd. () 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

Netsol Technologies Ltd.

Systems Ltd.

Octopus Digital Ltd.

Why is Octopus Digital Ltd. ?

Negative results in Mar 25

ROCE(HY) Lowest at 3.77%
NET SALES(Q) At PKR 231.46 has Fallen at -26.87%
PRE-TAX PROFIT(Q) At PKR 20.67 has Fallen at -59.48%

With ROE of 3.7, it has a expensive valuation with a 3.6 Price to Book Value

Over the past year, while the stock has generated a return of 0%, its profits have fallen by -60.6%

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 Computers - Software & Consulting)

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

Is Octopus Digital Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Octopus Digital Ltd.

-32.07%

-0.33

58.85%

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)

28.12%

EBIT Growth (5y)

12.98%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.41

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

16.83%

ROE (avg)

17.63%

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

3.35

EV to EBIT

65.94

EV to EBITDA

46.98

EV to Capital Employed

3.34

EV to Sales

7.88

PEG Ratio

Dividend Yield

ROCE (Latest)

5.07%

ROE (Latest)

5.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Bearish

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 PKR 297.76 MM

-30What is not working for the Company

INTEREST(Q)

At PKR 2.01 MM has Grown at inf%

INTEREST COVERAGE RATIO(Q)

Lowest at 112.36

RAW MATERIAL COST(Y)

Grown by 24.18% (YoY

NET SALES(Q)

Lowest at PKR 212.29 MM

OPERATING PROFIT(Q)

Lowest at PKR 2.25 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.06 %

PRE-TAX PROFIT(Q)

Lowest at PKR -17.91 MM

NET PROFIT(Q)

Lowest at PKR -25.33 MM

EPS(Q)

Lowest at PKR -0.16

Here's what is working for Octopus Digital Ltd.

Operating Cash Flow

Highest at PKR 297.76 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)

Here's what is not working for Octopus Digital Ltd.

Net Sales

At PKR 212.29 MM has Fallen at -27.75%

over average net sales of the previous four periods of PKR 293.83 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (PKR MM)

Pre-Tax Profit

At PKR -17.91 MM has Fallen at -146.95%

over average net sales of the previous four periods of PKR 38.15 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PKR MM)

Net Profit

At PKR -25.33 MM has Fallen at -169.88%

over average net sales of the previous four periods of PKR 36.24 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PKR MM)

Interest

At PKR 2.01 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Interest Coverage Ratio

Lowest at 112.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at PKR 212.29 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Operating Profit

Lowest at PKR 2.25 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Operating Profit Margin

Lowest at 1.06 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at PKR -17.91 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PKR MM)

Net Profit

Lowest at PKR -25.33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

EPS

Lowest at PKR -0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PKR)

Raw Material Cost

Grown by 24.18% (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