Ratos AB (RATO B) 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

LE Lundbergföretagen AB

Industrivärden AB

Linc AB

Storskogen Group AB

Traction AB

Investment AB Latour

Ratos AB

Kinnevik AB

ACQ Bure AB

Bure Equity AB

Svolder AB

Why is Ratos AB ?

The company is Net-Debt Free

Poor long term growth as Operating profit has grown by an annual rate -150.10% of over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 8.54% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate -150.10% of over the last 5 years

Negative results in Mar 26

NET PROFIT(HY) At SEK -413.23 MM has Grown at -334.3%
OPERATING CASH FLOW(Y) Lowest at SEK 2,602 MM
PRE-TAX PROFIT(Q) At SEK 87 MM has Fallen at -54.69%

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 -14.96%, its profits have fallen by -187.9%

Below par performance in long term as well as near term

Along with generating -14.96% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 in the last 3 years, 1 year and 3 months

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 Finance)

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

Is Ratos AB for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ratos AB

-100.0%

-0.47

27.05%

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)

-1.53%

EBIT Growth (5y)

-150.10%

EBIT to Interest (avg)

2.18

Debt to EBITDA (avg)

2.66

Net Debt to Equity (avg)

0.79

Sales to Capital Employed (avg)

1.22

Tax Ratio

47.18%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

7.25%

ROE (avg)

8.54%

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

0.85

EV to EBIT

-14.58

EV to EBITDA

7.30

EV to Capital Employed

0.89

EV to Sales

0.70

PEG Ratio

Dividend Yield

2.73%

ROCE (Latest)

-6.09%

ROE (Latest)

-1.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

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

3What is working for the Company

NET PROFIT(9M)

At SEK 13.24 MM has Grown at 115.84%

-18What is not working for the Company

NET PROFIT(HY)

At SEK -413.23 MM has Grown at -334.3%

OPERATING CASH FLOW(Y)

Lowest at SEK 2,602 MM

PRE-TAX PROFIT(Q)

At SEK 87 MM has Fallen at -54.69%

NET SALES(HY)

At SEK 9,098 MM has Grown at -25.44%

ROCE(HY)

Lowest at -5.34%

RAW MATERIAL COST(Y)

Grown by 9.14% (YoY

CASH AND EQV(HY)

Lowest at SEK 2,506 MM

Here's what is not working for Ratos AB

Net Profit

At SEK -413.23 MM has Grown at -334.3%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Pre-Tax Profit

At SEK 87 MM has Fallen at -54.69%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Operating Cash Flow

Lowest at SEK 2,602 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 (SEK MM)

Net Sales

At SEK 9,098 MM has Grown at -25.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)

Cash and Eqv

Lowest at SEK 2,506 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 9.14% (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