Rottneros AB (RROS) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Holmen AB

Billerud AB

Svenska Cellulosa AB SCA

Embellence Group AB

Nordic Paper Holding AB

Bong AB

Rottneros AB

Why is Rottneros AB ?

OPERATING CASH FLOW(Y) Lowest at SEK -138 MM
ROCE(HY) Lowest at -13.32%
DEBT-EQUITY RATIO (HY) Highest at 37.3 %

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 -63.65%, its profits have fallen by -2211.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -63.65% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 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 Paper, Forest & Jute Products)

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

Is Rottneros AB for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Rottneros AB

-63.65%

3.16

48.62%

OMX Stockholm 30

8.01%

0.44

18.11%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.99%

EBIT Growth (5y)

-391.65%

EBIT to Interest (avg)

15.36

Debt to EBITDA (avg)

3.44

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.36

Tax Ratio

10.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.28%

ROE (avg)

9.49%

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

0.52

EV to EBIT

-4.22

EV to EBITDA

-41.13

EV to Capital Employed

0.65

EV to Sales

0.49

PEG Ratio

Dividend Yield

ROCE (Latest)

-15.44%

ROE (Latest)

-13.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

1What is working for the Company

NET SALES(Q)

Highest at SEK 726 MM

-28What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK -138 MM

ROCE(HY)

Lowest at -13.32%

DEBT-EQUITY RATIO (HY)

Highest at 37.3 %

RAW MATERIAL COST(Y)

Grown by 752.04% (YoY

INTEREST(Q)

Highest at SEK 9 MM

PRE-TAX PROFIT(Q)

Lowest at SEK -198 MM

NET PROFIT(Q)

Lowest at SEK -158 MM

EPS(Q)

Lowest at SEK -1.04

Here's what is working for Rottneros AB

Net Sales

Highest at SEK 726 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SEK MM)

Depreciation

Highest at SEK 177 MM

in the last five periods

MOJO Watch

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

Depreciation (SEK MM)

Depreciation

At SEK 177 MM has Grown at 405.71%

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 (SEK MM)

Here's what is not working for Rottneros AB

Pre-Tax Profit

At SEK -198 MM has Fallen at -7,820%

over average net sales of the previous four periods of SEK -2.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK -158 MM has Fallen at -6,003%

over average net sales of the previous four periods of SEK -2.59 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Operating Cash Flow

Lowest at SEK -138 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)

Interest

At SEK 9 MM has Grown at 28.57%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Debt-Equity Ratio

Highest at 37.3 % and Grown

In each half year 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

Interest

Highest at SEK 9 MM

in the last five periods and Increased by 28.57% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Pre-Tax Profit

Lowest at SEK -198 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (SEK MM)

Net Profit

Lowest at SEK -158 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

EPS

Lowest at SEK -1.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SEK)

Raw Material Cost

Grown by 752.04% (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