Security Papers Ltd. (SEPL) 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

Security Papers Ltd.

Packages Ltd.

Century Paper & Board Mills Ltd.

Why is Security Papers Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Operating profit has grown by an annual rate 2.94% of over the last 5 years

Flat results in Mar 25

RAW MATERIAL COST(Y) Grown by 7.27% (YoY)
NET SALES(Q) Lowest at PKR 1,656.96
OPERATING PROFIT(Q) Lowest at PKR 364.23

With ROE of 17.6, it has a expensive valuation with a 1.1 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 0%, its profits have fallen by -7%
At the current price, the company has a high dividend yield of 7.7

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Security Papers Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Security Papers Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Security Papers Ltd.

20.79%

0.66

37.82%

Pakistan KSE 100 Share

26.26%

2.81

22.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.21%

EBIT Growth (5y)

1.05%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

0.90

Tax Ratio

37.89%

Dividend Payout Ratio

44.72%

Pledged Shares

Institutional Holding

ROCE (avg)

35.46%

ROE (avg)

17.55%

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

4.32

EV to EBITDA

3.76

EV to Capital Employed

1.21

EV to Sales

0.93

PEG Ratio

2.86

Dividend Yield

6.63%

ROCE (Latest)

28.02%

ROE (Latest)

16.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Bullish

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 4.94 times

-12What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PKR 543.37 MM

ROCE(HY)

Lowest at 14.06%

RAW MATERIAL COST(Y)

Grown by 31.43% (YoY

CASH AND EQV(HY)

Lowest at PKR 3,844.42 MM

DEBT-EQUITY RATIO (HY)

Highest at 0 %

OPERATING PROFIT(Q)

Lowest at PKR 230.07 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.12 %

PRE-TAX PROFIT(Q)

Lowest at PKR 354.85 MM

NET PROFIT(Q)

Lowest at PKR 213.28 MM

EPS(Q)

Lowest at PKR 3.6

Here's what is working for Security Papers Ltd.

Inventory Turnover Ratio

Highest at 4.94 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 Security Papers Ltd.

Operating Cash Flow

Lowest at PKR 543.37 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Operating Profit

Lowest at PKR 230.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PKR MM)

Operating Profit Margin

Lowest at 12.12 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at PKR 354.85 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PKR MM)

Net Profit

Lowest at PKR 213.28 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

EPS

Lowest at PKR 3.6

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PKR)

Cash and Eqv

Lowest at PKR 3,844.42 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 0 %

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

Raw Material Cost

Grown by 31.43% (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