Paxman AB (PAX) 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

Bactiguard Holding AB

Devyser Diagnostics AB

Genovis AB

Paxman AB

Smart Eye AB

Mentice AB

BrainCool AB

C-RAD AB

Doxa AB

SyntheticMR AB

Sedana Medical AB

Why is Paxman AB ?

Poor Management Efficiency with a low ROE of 5.08%

The company has been able to generate a Return on Equity (avg) of 5.08% signifying low profitability per unit of shareholders funds

With ROE of 1.97%, it has a very expensive valuation with a 3.56 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 -34.71%, its profits have fallen by -70.6%

Underperformed the market in the last 1 year

Even though the market (OMX Stockholm 30) has generated returns of 10.97% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -34.71% returns

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 Pharmaceuticals & Biotechnology)

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

Is Paxman AB for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Paxman AB

-34.71%

-0.02

37.81%

OMX Stockholm 30

10.97%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

29.00%

EBIT Growth (5y)

42.35%

EBIT to Interest (avg)

0.01

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

1.23

Tax Ratio

6.01%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.10%

ROE (avg)

5.08%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

180

Industry P/E

Price to Book Value

3.56

EV to EBIT

62.21

EV to EBITDA

35.94

EV to Capital Employed

4.71

EV to Sales

5.08

PEG Ratio

Dividend Yield

ROCE (Latest)

7.57%

ROE (Latest)

1.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

6What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 10.04 times

NET SALES(Q)

Highest at SEK 86.94 MM

CASH AND EQV(HY)

Highest at SEK 278.81 MM

-19What is not working for the Company

INTEREST(9M)

At SEK 15.41 MM has Grown at 267.03%

PRE-TAX PROFIT(Q)

At SEK 1.26 MM has Fallen at -49.06%

NET PROFIT(Q)

At SEK 1.27 MM has Fallen at -40.67%

RAW MATERIAL COST(Y)

Grown by 99.26% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.71 times

Here's what is working for Paxman AB

Net Sales

Highest at SEK 86.94 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (SEK MM)

Inventory Turnover Ratio

Highest at 10.04 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

At SEK 86.94 MM has Grown at 27.41%

over average net sales of the previous four periods of SEK 68.24 MM

MOJO Watch

Near term sales trend is positive

Net Sales (SEK MM)

Cash and Eqv

Highest at SEK 278.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at SEK 6.85 MM

in the last five periods

MOJO Watch

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

Depreciation (SEK MM)

Depreciation

At SEK 6.85 MM has Grown at 56.19%

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 (SEK MM)

Here's what is not working for Paxman AB

Interest

At SEK 15.41 MM has Grown at 267.03%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Pre-Tax Profit

At SEK 1.26 MM has Fallen at -49.06%

over average net sales of the previous four periods of SEK 2.48 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 1.27 MM has Fallen at -40.67%

over average net sales of the previous four periods of SEK 2.14 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Debtors Turnover Ratio

Lowest at 4.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 99.26% (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