Why is RLH Properties SAB de CV ?
1
Poor Management Efficiency with a low ROCE of 2.85%
- The company has been able to generate a Return on Capital Employed (avg) of 2.85% signifying low profitability per unit of total capital (equity and debt)
2
Low ability to service debt as the company has a high Debt to EBITDA ratio of 20.49 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 20.49 times
- The company has been able to generate a Return on Equity (avg) of 2.33% signifying low profitability per unit of shareholders funds
- INTEREST(HY) At MXN 560.54 MM has Grown at 63.81%
- RAW MATERIAL COST(Y) Grown by 102.12% (YoY)
3
With ROE of 4.61%, it has a very expensive valuation with a 1.14 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 1.52%, its profits have risen by 14.8% ; the PEG ratio of the company is 1.7
4
Underperformed the market in the last 1 year
- The stock has generated a return of 1.52% in the last 1 year, much lower than market (Mexico IPC) returns of 26.18%
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 Furniture, Home Furnishing)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is RLH Properties SAB de CV for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
RLH Properties SAB de CV
-100.0%
-0.11
23.77%
Mexico IPC
25.36%
1.61
16.27%
Quality key factors
Factor
Value
Sales Growth (5y)
18.56%
EBIT Growth (5y)
35.06%
EBIT to Interest (avg)
-0.07
Debt to EBITDA (avg)
20.49
Net Debt to Equity (avg)
0.83
Sales to Capital Employed (avg)
0.36
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.85%
ROE (avg)
2.33%
Valuation Key Factors 
Factor
Value
P/E Ratio
25
Industry P/E
Price to Book Value
1.14
EV to EBIT
32.37
EV to EBITDA
18.69
EV to Capital Employed
1.09
EV to Sales
3.50
PEG Ratio
1.67
Dividend Yield
NA
ROCE (Latest)
3.35%
ROE (Latest)
4.61%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
Bearish
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
No Trend
No Trend
OBV
No Trend
No Trend
Technical Movement
8What is working for the Company
PRE-TAX PROFIT(Q)
At MXN 211.33 MM has Grown at 33,232.97%
NET PROFIT(Q)
Highest at MXN 544.22 MM
EPS(Q)
Highest at MXN 0.44
-6What is not working for the Company
INTEREST(HY)
At MXN 560.54 MM has Grown at 63.81%
RAW MATERIAL COST(Y)
Grown by 102.12% (YoY
Here's what is working for RLH Properties SAB de CV
Pre-Tax Profit
At MXN 211.33 MM has Grown at 33,232.97%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (MXN MM)
Net Profit
Highest at MXN 544.22 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (MXN MM)
Net Profit
At MXN 544.22 MM has Grown at 75.65%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (MXN MM)
EPS
Highest at MXN 0.44
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (MXN)
Depreciation
Highest at MXN 166.58 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (MXN MM)
Here's what is not working for RLH Properties SAB de CV
Interest
At MXN 560.54 MM has Grown at 63.81%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (MXN MM)
Raw Material Cost
Grown by 102.12% (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






