Ratti SpA (RAT) 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

TOD'S SpA

Brunello Cucinelli SpA

Moncler SpA

Salvatore Ferragamo SpA

Ratti SpA

Pattern SpA

Geox SpA

Aeffe SpA

Monnalisa SpA

CSP International Fashion Group SpA

Eligo SpA

Why is Ratti SpA ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

Poor long term growth as Net Sales has grown by an annual rate of 4.47% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 2.62
OPERATING CASH FLOW(Y) Lowest at EUR 7.33 MM
ROCE(HY) Lowest at -9.43%
RAW MATERIAL COST(Y) Grown by 905.88% (YoY)

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -44.16% returns in the last 1 year, the stock has also underperformed Italy FTSE MIB 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 Footwear)

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

Is Ratti SpA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ratti SpA

-44.16%

-2.01

31.08%

Italy FTSE MIB

16.45%

0.84

19.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.47%

EBIT Growth (5y)

32.93%

EBIT to Interest (avg)

2.62

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.18

Sales to Capital Employed (avg)

0.98

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.29%

ROE (avg)

6.07%

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

0.80

EV to EBIT

15.59

EV to EBITDA

7.41

EV to Capital Employed

0.84

EV to Sales

0.58

PEG Ratio

Dividend Yield

ROCE (Latest)

5.37%

ROE (Latest)

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

No Trend

OBV

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at EUR 7.33 MM

ROCE(HY)

Lowest at -9.43%

RAW MATERIAL COST(Y)

Grown by 905.88% (YoY

CASH AND EQV(HY)

Lowest at EUR 11.4 MM

DEBT-EQUITY RATIO (HY)

Highest at 22.6 %

NET SALES(Q)

Lowest at EUR 38.56 MM

OPERATING PROFIT(Q)

Lowest at EUR -2.79 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -7.23 %

PRE-TAX PROFIT(Q)

Lowest at EUR -6.02 MM

NET PROFIT(Q)

Lowest at EUR -5.51 MM

EPS(Q)

Lowest at EUR -0.2

Here's what is working for Ratti SpA

Depreciation

Highest at EUR 2.96 MM

in the last five periods

MOJO Watch

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

Depreciation (EUR MM)

Here's what is not working for Ratti SpA

Pre-Tax Profit

At EUR -6.02 MM has Fallen at -709.27%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (EUR MM)

Net Profit

At EUR -5.51 MM has Fallen at -668.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (EUR MM)

Operating Cash Flow

Lowest at EUR 7.33 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 (EUR MM)

Net Sales

Lowest at EUR 38.56 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (EUR MM)

Operating Profit

Lowest at EUR -2.79 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (EUR MM)

Operating Profit Margin

Lowest at -7.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at EUR -6.02 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (EUR MM)

Net Profit

Lowest at EUR -5.51 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (EUR MM)

EPS

Lowest at EUR -0.2

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (EUR)

Cash and Eqv

Lowest at EUR 11.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 22.6 %

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

Raw Material Cost

Grown by 905.88% (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