Shifa International Hospitals Ltd. (SHFA) 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

Shifa International Hospitals Ltd.

Why is Shifa International Hospitals Ltd. ?

Poor Management Efficiency with a low ROE of 9.38%

The company has been able to generate a Return on Equity (avg) of 9.38% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 5.12

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at PKR 4,216.66 MM
ROCE(HY) Highest at 16.1%
RAW MATERIAL COST(Y) Fallen by -45.98% (YoY)

With ROE of 14.8, it has a attractive valuation with a 2.1 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 0%, its profits have risen by 103.7% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shifa International Hospitals Ltd. should be less than 10%
Overall Portfolio exposure to Hospital should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hospital)

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

Is Shifa International Hospitals Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shifa International Hospitals Ltd.

232.98%

5.08

50.80%

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)

19.29%

EBIT Growth (5y)

52.61%

EBIT to Interest (avg)

5.12

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

1.68

Tax Ratio

44.23%

Dividend Payout Ratio

14.00%

Pledged Shares

Institutional Holding

ROCE (avg)

17.62%

ROE (avg)

9.38%

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

2.27

EV to EBIT

7.58

EV to EBITDA

5.96

EV to Capital Employed

2.66

EV to Sales

1.08

PEG Ratio

0.23

Dividend Yield

1.40%

ROCE (Latest)

35.06%

ROE (Latest)

14.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PKR 3,937.78 MM

ROCE(HY)

Highest at 16.46%

INTEREST COVERAGE RATIO(Q)

Highest at 1,763.1

RAW MATERIAL COST(Y)

Fallen by -3.27% (YoY

CASH AND EQV(HY)

Highest at PKR 8,984.48 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 20.23 times

DEBTORS TURNOVER RATIO(HY)

Highest at 14.98 times

NET SALES(Q)

Highest at PKR 7,615.51 MM

OPERATING PROFIT(Q)

Highest at PKR 1,486.19 MM

PRE-TAX PROFIT(Q)

Highest at PKR 1,227.04 MM

NET PROFIT(Q)

Highest at PKR 741.25 MM

EPS(Q)

Highest at PKR 11.73

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Shifa International Hospitals Ltd.

Operating Cash Flow

Highest at PKR 3,937.78 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PKR MM)

Interest Coverage Ratio

Highest at 1,763.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at PKR 7,615.51 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Operating Profit

Highest at PKR 1,486.19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Pre-Tax Profit

Highest at PKR 1,227.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit

Highest at PKR 741.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 11.73

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Cash and Eqv

Highest at PKR 8,984.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 20.23 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 14.98 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -3.27% (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

Depreciation

Highest at PKR 282.53 MM

in the last five periods

MOJO Watch

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

Depreciation (PKR MM)