RLH Properties SAB de CV (RLHA) 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

Consorcio ARA SAB de CV

Corpovael SA de CV

Servicios Corporativos Javer SAPI de CV

RLH Properties SAB de CV

Desarrolladora Homex SAB de CV

Why is RLH Properties SAB de CV ?

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)

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

With a fall in Net Profit of NAN%, the company declared Very Negative results in Sep 25

INTEREST(HY) At MXN 501.32 MM has Grown at 22.34%
RAW MATERIAL COST(Y) Grown by 52.63% (YoY)
NET SALES(Q) Lowest at MXN 1,150.02 MM

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 3.13%, its profits have risen by 14.8% ; the PEG ratio of the company is 1.7

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 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%

-0.17

23.51%

Mexico IPC

31.4%

1.71

18.32%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

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

Pledged Shares

Institutional Holding

ROCE (avg)

2.85%

ROE (avg)

2.33%

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

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

ROCE (Latest)

3.35%

ROE (Latest)

4.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

No Trend

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

-24What is not working for the Company

INTEREST(HY)

At MXN 501.32 MM has Grown at 22.34%

RAW MATERIAL COST(Y)

Grown by 52.63% (YoY

NET SALES(Q)

Lowest at MXN 1,150.02 MM

OPERATING PROFIT(Q)

Lowest at MXN -205.23 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -17.85 %

PRE-TAX PROFIT(Q)

Lowest at MXN -582.9 MM

NET PROFIT(Q)

Lowest at MXN -754.67 MM

EPS(Q)

Lowest at MXN -0.6

Here's what is working for RLH Properties SAB de CV

Depreciation

Highest at MXN 271.02 MM

in the last five periods

MOJO Watch

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

Depreciation (MXN MM)

Depreciation

At MXN 271.02 MM has Grown at 62.7%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (MXN MM)

Here's what is not working for RLH Properties SAB de CV

Net Profit

At MXN -754.67 MM has Fallen at -455.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (MXN MM)

Interest

At MXN 501.32 MM has Grown at 22.34%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (MXN MM)

Net Sales

Lowest at MXN 1,150.02 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (MXN MM)

Operating Profit

Lowest at MXN -205.23 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (MXN MM)

Operating Profit Margin

Lowest at -17.85 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at MXN -582.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (MXN MM)

Pre-Tax Profit

Fallen at -45.83%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (MXN MM)

Net Profit

Lowest at MXN -754.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (MXN MM)

EPS

Lowest at MXN -0.6

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (MXN)

Raw Material Cost

Grown by 52.63% (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