ScoreWhy is Sierra Cables Plc ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.10 times
- Poor long term growth as Net Sales has grown by an annual rate of 24.36% over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.10 times
2
The company has declared Positive results for the last 3 consecutive quarters
- PRE-TAX PROFIT(Q) At LKR 521.03 MM has Grown at 470.87%
- NET PROFIT(Q) At LKR 576.56 MM has Grown at 622.79%
- ROCE(HY) Highest at 35.19%
3
With ROE of 23.77%, it has a expensive valuation with a 1.87 Price to Book Value
- The stock is trading at a fair value compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 65.19%, its profits have risen by 81.3% ; the PEG ratio of the company is 0.1
4
Market Beating Performance
- The stock has generated a return of 65.19% in the last 1 year, much higher than market (Sri Lanka CSE All Share) returns of 11.95%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Sierra Cables Plc should be less than 10%
- Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Sierra Cables Plc for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Sierra Cables Plc
65.19%
2.42
52.46%
Sri Lanka CSE All Share
11.95%
0.72
16.49%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
24.36%
EBIT Growth (5y)
51.36%
EBIT to Interest (avg)
6.51
Debt to EBITDA (avg)
2.15
Net Debt to Equity (avg)
0.61
Sales to Capital Employed (avg)
0.87
Tax Ratio
14.34%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
19.00%
ROE (avg)
15.59%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
8
Industry P/E
Price to Book Value
1.87
EV to EBIT
10.42
EV to EBITDA
9.67
EV to Capital Employed
1.41
EV to Sales
1.76
PEG Ratio
0.10
Dividend Yield
NA
ROCE (Latest)
13.56%
ROE (Latest)
23.77%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Bearish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend25What is working for the Company
PRE-TAX PROFIT(Q)
At LKR 521.03 MM has Grown at 470.87%
NET PROFIT(Q)
At LKR 576.56 MM has Grown at 622.79%
ROCE(HY)
Highest at 35.19%
RAW MATERIAL COST(Y)
Fallen by 1.09% (YoY
NET SALES(Q)
At LKR 4,184.73 MM has Grown at 86.35%
-7What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at LKR -3,029.41 MM
INTEREST(Q)
At LKR 56.66 MM has Grown at 140.92%
DEBT-EQUITY RATIO
(HY)
Highest at 142.72 %
Here's what is working for Sierra Cables Plc
Pre-Tax Profit
At LKR 521.03 MM has Grown at 470.87%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (LKR MM)
Net Profit
At LKR 576.56 MM has Grown at 622.79%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very positive
Net Profit (LKR MM)
Net Sales
At LKR 4,184.73 MM has Grown at 86.35%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (LKR MM)
Raw Material Cost
Fallen by 1.09% (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 Sierra Cables Plc
Operating Cash Flow
Lowest at LKR -3,029.41 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (LKR MM)
Interest
At LKR 56.66 MM has Grown at 140.92%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (LKR MM)
Debt-Equity Ratio
Highest at 142.72 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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