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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Embellence Group AB

Holmen AB

Bong AB

Svenska Cellulosa AB SCA

Billerud AB

Nordic Paper Holding AB

Rottneros AB

Why is Rottneros AB ?

INTEREST(HY) At SEK 13 MM has Grown at 225%
OPERATING CASH FLOW(Y) Lowest at SEK -71 MM
ROCE(HY) Lowest at -28.04%

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 -56.34%, its profits have fallen by -2211.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -56.34% 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

-56.34%

2.18

52.51%

OMX Stockholm 30

10.97%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.56%

EBIT Growth (5y)

-254.57%

EBIT to Interest (avg)

15.36

Debt to EBITDA (avg)

3.44

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.35

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

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 5.79 times

-35What is not working for the Company

INTEREST(HY)

At SEK 13 MM has Grown at 225%

OPERATING CASH FLOW(Y)

Lowest at SEK -71 MM

ROCE(HY)

Lowest at -28.04%

RAW MATERIAL COST(Y)

Grown by 221.48% (YoY

NET SALES(Q)

Lowest at SEK 517 MM

OPERATING PROFIT(Q)

Lowest at SEK -263 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -50.87 %

PRE-TAX PROFIT(Q)

Lowest at SEK -303 MM

NET PROFIT(Q)

Lowest at SEK -256 MM

Here's what is working for Rottneros AB

Inventory Turnover Ratio

Highest at 5.79 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Rottneros AB

Interest

At SEK 13 MM has Grown at 225%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Pre-Tax Profit

At SEK -303 MM has Fallen at -239.5%

over average net sales of the previous four periods of SEK -89.25 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK -256 MM has Fallen at -260.56%

over average net sales of the previous four periods of SEK -71 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Operating Cash Flow

Lowest at SEK -71 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 517 MM has Fallen at -20.06%

over average net sales of the previous four periods of SEK 646.75 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (SEK MM)

Net Sales

Lowest at SEK 517 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SEK MM)

Operating Profit

Lowest at SEK -263 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at -50.87 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at SEK -303 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 -256 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

Raw Material Cost

Grown by 221.48% (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