Railcare Group AB (RAIL) 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

Railcare Group AB

Lyckegård Group AB

Seafire AB

Volvo AB

VBG Group AB

Alimak Group AB

Sandvik Aktiebolag

engcon AB

Epiroc AB

Zoomability Int AB

OXE Marine AB

Why is Railcare Group AB ?

High Management Efficiency with a high ROCE of 13.17%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.03

Healthy long term growth as Net Sales has grown by an annual rate of 10.72% and Operating profit at 1.40%

With a growth in Net Profit of 55.87%, the company declared Very Positive results in Mar 26

NET PROFIT(HY) At SEK 17.64 MM has Grown at 130.64%
RAW MATERIAL COST(Y) Fallen by -951.46% (YoY)
CASH AND EQV(HY) Highest at SEK 93.22 MM

With ROE of 12.81%, it has a attractive valuation with a 2.18 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 33.96%, its profits have risen by 31% ; the PEG ratio of the company is 0.6

Consistent Returns over the last 3 years

Along with generating 33.96% returns in the last 1 year, the stock has outperformed OMX Stockholm 30 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Railcare Group AB should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Railcare Group AB for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Railcare Group AB

33.96%

1.24

25.71%

OMX Stockholm 30

30.13%

1.89

15.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.72%

EBIT Growth (5y)

1.40%

EBIT to Interest (avg)

8.03

Debt to EBITDA (avg)

1.55

Net Debt to Equity (avg)

0.91

Sales to Capital Employed (avg)

1.14

Tax Ratio

25.67%

Dividend Payout Ratio

42.42%

Pledged Shares

Institutional Holding

ROCE (avg)

13.17%

ROE (avg)

14.66%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.18

EV to EBIT

14.83

EV to EBITDA

4.68

EV to Capital Employed

1.64

EV to Sales

1.41

PEG Ratio

0.55

Dividend Yield

6.07%

ROCE (Latest)

11.09%

ROE (Latest)

12.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

11What is working for the Company

NET PROFIT(HY)

At SEK 17.64 MM has Grown at 130.64%

RAW MATERIAL COST(Y)

Fallen by -951.46% (YoY

CASH AND EQV(HY)

Highest at SEK 93.22 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 6.84 times

OPERATING PROFIT MARGIN(Q)

Highest at 37.83 %

-3What is not working for the Company

INTEREST(Q)

At SEK 6.2 MM has Grown at 78.45%

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.23 times

Here's what is working for Railcare Group AB

Net Profit

At SEK 17.64 MM has Grown at 130.64%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (SEK MM)

Operating Profit Margin

Highest at 37.83 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at SEK 93.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 6.84 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 -951.46% (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

Depreciation

Highest at SEK 39.54 MM

in the last five periods

MOJO Watch

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

Depreciation (SEK MM)

Here's what is not working for Railcare Group AB

Interest

At SEK 6.2 MM has Grown at 78.45%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Inventory Turnover Ratio

Lowest at 10.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio