Petra Diamonds Ltd. (PDL) 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

Sylvania Platinum Ltd.

Antofagasta Plc

Rio Tinto Plc

RHI Magnesita NV

Central Asia Metals Plc

Anglo American Plc

Jubilee Metals Group Plc

Kenmare Resources Plc

Ecora Resources Plc

Petra Diamonds Ltd.

Atalaya Mining Plc

Why is Petra Diamonds Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.18% signifying low profitability per unit of shareholders funds
NET PROFIT(Q) At GBP -5.4 MM has Fallen at -251.73%
OPERATING CASH FLOW(Y) Lowest at GBP 61.03 MM
ROCE(HY) Lowest at -70.13%

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 -39.76%, its profits have fallen by -117.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -39.76% returns in the last 1 year, the stock has also underperformed FTSE 100 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 Minerals & Mining)

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

Is Petra Diamonds Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Petra Diamonds Ltd.

-38.14%

-0.72

81.49%

FTSE 100

13.98%

1.15

13.60%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.39%

EBIT Growth (5y)

-170.16%

EBIT to Interest (avg)

0.62

Debt to EBITDA (avg)

4.50

Net Debt to Equity (avg)

0.70

Sales to Capital Employed (avg)

0.57

Tax Ratio

9.34%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

7.60%

ROE (avg)

4.18%

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

0.71

EV to EBIT

-4.01

EV to EBITDA

-169.31

EV to Capital Employed

0.92

EV to Sales

1.61

PEG Ratio

Dividend Yield

ROCE (Latest)

-22.88%

ROE (Latest)

-55.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

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

3What is working for the Company

NET PROFIT(HY)

Higher at GBP -5.4 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 5.73 times

-17What is not working for the Company

NET PROFIT(Q)

At GBP -5.4 MM has Fallen at -251.73%

OPERATING CASH FLOW(Y)

Lowest at GBP 61.03 MM

ROCE(HY)

Lowest at -70.13%

DEBT-EQUITY RATIO (HY)

Highest at 250.91 %

RAW MATERIAL COST(Y)

Grown by 248.05% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.56 times

NET SALES(Q)

Lowest at GBP 70.95 MM

OPERATING PROFIT(Q)

Lowest at GBP -6.94 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -9.78 %

Here's what is working for Petra Diamonds Ltd.

Inventory Turnover Ratio

Highest at 5.73 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

At GBP 36.25 MM has Grown at 37.61%

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 (GBP MM)

Here's what is not working for Petra Diamonds Ltd.

Net Sales

At GBP 70.95 MM has Fallen at -49.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (GBP MM)

Net Profit

At GBP -5.4 MM has Fallen at -251.73%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (GBP MM)

Debt-Equity Ratio

Highest at 250.91 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Cash Flow

Lowest at GBP 61.03 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (GBP MM)

Net Sales

Lowest at GBP 70.95 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Operating Profit

Lowest at GBP -6.94 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at -9.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 5.56 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 248.05% (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