Pakistan Telecommunication Co. Ltd. (PTC) 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

Pakistan Telecommunication Co. Ltd.

Why is Pakistan Telecommunication Co. Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.93%

Poor long term growth as Net Sales has grown by an annual rate of 12.70% and Operating profit at 33.15% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 0 times

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 0%, its profits have risen by 39.2%

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 Telecom - Services)

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

Is Pakistan Telecommunication Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Pakistan Telecommunication Co. Ltd.

86.77%

1.78

58.12%

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)

14.24%

EBIT Growth (5y)

42.34%

EBIT to Interest (avg)

0.26

Debt to EBITDA (avg)

1.32

Net Debt to Equity (avg)

4.73

Sales to Capital Employed (avg)

0.85

Tax Ratio

30.49%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

3.93%

ROE (avg)

1.21%

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

3.39

EV to EBIT

14.09

EV to EBITDA

3.68

EV to Capital Employed

1.53

EV to Sales

1.23

PEG Ratio

Dividend Yield

ROCE (Latest)

10.88%

ROE (Latest)

-26.59%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PKR 65,718 MM

NET SALES(Q)

Highest at PKR 63,723.29 MM

INTEREST COVERAGE RATIO(Q)

Highest at 237.67

RAW MATERIAL COST(Y)

Fallen by -52.08% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 18.02 times

DEBTORS TURNOVER RATIO(HY)

Highest at 1.48 times

OPERATING PROFIT(Q)

Highest at PKR 25,320 MM

PRE-TAX PROFIT(Q)

At PKR 2,572.05 MM has Grown at 127.3%

NET PROFIT(Q)

At PKR 2,810.81 MM has Grown at 144.5%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Pakistan Telecommunication Co. Ltd.

Net Sales

Highest at PKR 63,723.29 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (PKR MM)

Interest Coverage Ratio

Highest at 237.67

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 PKR 65,718 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PKR MM)

Operating Profit

Highest at PKR 25,320 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Pre-Tax Profit

At PKR 2,572.05 MM has Grown at 127.3%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit

At PKR 2,810.81 MM has Grown at 144.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

Inventory Turnover Ratio

Highest at 18.02 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.48 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 -52.08% (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