Ontex Group NV (ONTEX) 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

Ontex Group NV

Realco SA

Why is Ontex Group NV ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -3.33% and Operating profit at -9.50% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.50% signifying low profitability per unit of shareholders funds

Flat results in Jun 26

ROCE(HY) Lowest at -13.84%
RAW MATERIAL COST(Y) Grown by 8.41% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 4.47 times

Below par performance in long term as well as near term

Along with generating -59.24% returns in the last 1 year, the stock has also underperformed Belgium BEL 20 in the last 3 years, 1 year and 3 months

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 Ontex Group NV for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ontex Group NV

-59.24%

-2.28

43.49%

Belgium BEL 20

22.63%

1.44

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.33%

EBIT Growth (5y)

-9.50%

EBIT to Interest (avg)

1.85

Debt to EBITDA (avg)

3.69

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

1.13

Tax Ratio

13.40%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.40%

ROE (avg)

4.50%

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

0.21

EV to EBIT

6.39

EV to EBITDA

3.53

EV to Capital Employed

0.45

EV to Sales

0.35

PEG Ratio

Dividend Yield

ROCE (Latest)

7.02%

ROE (Latest)

3.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at EUR 231.7 MM

NET PROFIT(Q)

At EUR 11.2 MM has Grown at 286.21%

PRE-TAX PROFIT(Q)

At EUR 17.6 MM has Grown at 188.52%

-8What is not working for the Company

ROCE(HY)

Lowest at -13.84%

RAW MATERIAL COST(Y)

Grown by 8.41% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.47 times

NET SALES(Q)

Lowest at EUR 854.8 MM

OPERATING PROFIT(Q)

Lowest at EUR 78.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.15 %

EPS(Q)

Lowest at EUR -1.79

Here's what is working for Ontex Group NV

Net Profit

At EUR 11.2 MM has Grown at 286.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (EUR MM)

Operating Cash Flow

Highest at EUR 231.7 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 (EUR MM)

Pre-Tax Profit

At EUR 17.6 MM has Grown at 188.52%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (EUR MM)

Depreciation

Highest at EUR 42.2 MM

in the last five periods

MOJO Watch

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

Depreciation (EUR MM)

Depreciation

At EUR 42.2 MM has Grown at 7.11%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (EUR MM)

Here's what is not working for Ontex Group NV

Net Sales

Lowest at EUR 854.8 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (EUR MM)

Operating Profit

Lowest at EUR 78.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (EUR MM)

Operating Profit Margin

Lowest at 9.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at EUR -1.79

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (EUR)

Inventory Turnover Ratio

Lowest at 4.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 8.41% (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