PKP Cargo SA (PKP) 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

PKP Cargo SA

Trans Polonia SA

Why is PKP Cargo SA ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.50%

Poor long term growth as Net Sales has grown by an annual rate of -1.43% and Operating profit at 12.97% over the last 5 years
The company is Net-Debt Free

Flat results in Mar 26

NET PROFIT(HY) At PLN -39.34 MM has Grown at -119.09%
OPERATING CASH FLOW(Y) Lowest at PLN 247.5 MM
RAW MATERIAL COST(Y) Grown by 45.39% (YoY)

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -29.81% returns in the last 1 year, the stock has also underperformed Poland WIG 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 Transport Services)

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

Is PKP Cargo SA for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

PKP Cargo SA

-29.87%

-0.51

42.13%

Poland WIG

29.57%

1.74

17.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.43%

EBIT Growth (5y)

12.97%

EBIT to Interest (avg)

-1.55

Debt to EBITDA (avg)

2.36

Net Debt to Equity (avg)

1.52

Sales to Capital Employed (avg)

1.43

Tax Ratio

16.45%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.50%

ROE (avg)

1.36%

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

0.69

EV to EBIT

-41.93

EV to EBITDA

5.05

EV to Capital Employed

0.89

EV to Sales

0.50

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.13%

ROE (Latest)

-8.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

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

4What is working for the Company

ROCE(HY)

Highest at 5.93%

NET PROFIT(9M)

Higher at PLN -16.99 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 22.61 times

-14What is not working for the Company

NET PROFIT(HY)

At PLN -39.34 MM has Grown at -119.09%

OPERATING CASH FLOW(Y)

Lowest at PLN 247.5 MM

RAW MATERIAL COST(Y)

Grown by 45.39% (YoY

OPERATING PROFIT(Q)

Lowest at PLN 49.4 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.51 %

Here's what is working for PKP Cargo SA

Inventory Turnover Ratio

Highest at 22.61 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at PLN 108.1 MM

in the last five periods

MOJO Watch

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

Depreciation (PLN MM)

Here's what is not working for PKP Cargo SA

Net Profit

At PLN -39.34 MM has Grown at -119.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PLN MM)

Operating Cash Flow

Lowest at PLN 247.5 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PLN MM)

Operating Profit

Lowest at PLN 49.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PLN MM)

Operating Profit Margin

Lowest at 5.51 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 45.39% (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