Sanok Rubber Company SA (SNK) 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

M4B SA

Mennica Polska SA

Sanok Rubber Company SA

Orzel SA

Why is Sanok Rubber Company SA ?

Poor Management Efficiency with a low ROE of 9.45%

The company has been able to generate a Return on Equity (avg) of 9.45% signifying low profitability per unit of shareholders funds

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 32.94% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 9.45% signifying low profitability per unit of shareholders funds

The company declared very negative results in Dec'24 after flat results in Sep'24

INTEREST(HY) At PLN 11.44 MM has Grown at 104.5%
OPERATING CASH FLOW(Y) Lowest at PLN 115.31 MM
ROCE(HY) Lowest at 8.53%

With ROE of 8.74%, it has a fair valuation with a 1.07 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 -1.72%, its profits have fallen by -19.3%

Below par performance in long term as well as near term

Along with generating -1.72% returns in the last 1 year, the stock has also underperformed Poland WIG in the last 3 years, 1 year and 3 months

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 Miscellaneous)

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

Is Sanok Rubber Company SA for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sanok Rubber Company SA

-1.72%

-0.07

20.28%

Poland WIG

39.24%

1.84

20.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.70%

EBIT Growth (5y)

32.94%

EBIT to Interest (avg)

5.83

Debt to EBITDA (avg)

1.03

Net Debt to Equity (avg)

0.46

Sales to Capital Employed (avg)

146.24

Tax Ratio

11.24%

Dividend Payout Ratio

70.25%

Pledged Shares

Institutional Holding

ROCE (avg)

8.31%

ROE (avg)

9.45%

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

1.07

EV to EBIT

14.20

EV to EBITDA

5.68

EV to Capital Employed

1.05

EV to Sales

0.54

PEG Ratio

Dividend Yield

6.98%

ROCE (Latest)

7.39%

ROE (Latest)

8.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

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

RAW MATERIAL COST(Y)

Fallen by -9.09% (YoY

-13What is not working for the Company

INTEREST(HY)

At PLN 11.44 MM has Grown at 104.5%

OPERATING CASH FLOW(Y)

Lowest at PLN 115.31 MM

ROCE(HY)

Lowest at 8.53%

CASH AND EQV(HY)

Lowest at PLN 140.62 MM

DEBT-EQUITY RATIO (HY)

Highest at 49.28 %

OPERATING PROFIT MARGIN(Q)

Lowest at 7.62 %

NET PROFIT(Q)

At PLN 7.94 MM has Fallen at -41.23%

Here's what is working for Sanok Rubber Company SA

Raw Material Cost

Fallen by -9.09% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Sanok Rubber Company SA

Interest

At PLN 11.44 MM has Grown at 104.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Operating Cash Flow

Lowest at PLN 115.31 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PLN MM)

Operating Profit Margin

Lowest at 7.62 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At PLN 7.94 MM has Fallen at -41.23%

over average net sales of the previous four periods of PLN 13.52 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PLN MM)

Cash and Eqv

Lowest at PLN 140.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 49.28 %

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