Prochem SA (PRM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Introl SA

Forbuild SA

P.A. Nova SA

ZUE SA

Elektrotim SA

MDI Energia SA

Mostostal Warszawa SA

PJP Makrum SA

Prochem SA

Novavis Group SA

RAFAKO SA

Why is Prochem SA ?

Poor Management Efficiency with a low ROE of 4.24%

The company has been able to generate a Return on Equity (avg) of 4.24% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -225.70% of over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET SALES(Q) At PLN 21.08 MM has Fallen at -53.5%
PRE-TAX PROFIT(Q) At PLN -5.39 MM has Fallen at -427.1%
NET PROFIT(Q) At PLN -5.72 MM has Fallen at -138.43%

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 -20.55%, its profits have fallen by -41.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.55% 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 Construction)

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

Is Prochem SA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Prochem SA

-20.0%

-0.72

39.35%

Poland WIG

39.24%

1.84

20.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-20.65%

EBIT Growth (5y)

-225.70%

EBIT to Interest (avg)

-0.94

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.16

Sales to Capital Employed (avg)

3.12

Tax Ratio

1.50%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.52%

ROE (avg)

4.24%

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

1.57

EV to EBIT

-2.14

EV to EBITDA

-2.96

EV to Capital Employed

1.46

EV to Sales

0.51

PEG Ratio

Dividend Yield

ROCE (Latest)

-68.15%

ROE (Latest)

-92.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly 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

2What is working for the Company

NET PROFIT(HY)

Higher at PLN -17.87 MM

-32What is not working for the Company

NET SALES(Q)

At PLN 21.08 MM has Fallen at -53.5%

PRE-TAX PROFIT(Q)

At PLN -5.39 MM has Fallen at -427.1%

NET PROFIT(Q)

At PLN -5.72 MM has Fallen at -138.43%

ROCE(HY)

Lowest at -59.85%

DEBT-EQUITY RATIO (HY)

Highest at 84.49 %

INTEREST(Q)

At PLN 1.14 MM has Grown at 35.87%

RAW MATERIAL COST(Y)

Grown by 81.56% (YoY

CASH AND EQV(HY)

Lowest at PLN 12.46 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.19%

Here's what is working for Prochem SA

Depreciation

Highest at PLN 1.73 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 Prochem SA

Net Sales

At PLN 21.08 MM has Fallen at -53.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (PLN MM)

Pre-Tax Profit

At PLN -5.39 MM has Fallen at -427.1%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PLN MM)

Net Profit

At PLN -5.72 MM has Fallen at -138.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PLN MM)

Interest

At PLN 1.14 MM has Grown at 35.87%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Debt-Equity Ratio

Highest at 84.49 % 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

Cash and Eqv

Lowest at PLN 12.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 2.19%

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 81.56% (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