Singer (Sri Lanka) Plc (SINS.N0000) 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

Singer (Sri Lanka) Plc

Eastern Merchants Plc

Brown & Co. PLC

Why is Singer (Sri Lanka) Plc ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 13.63% and Operating profit at 22.72% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Positive results for the last 5 consecutive quarters

ROCE(HY) Highest at 39.43%
INVENTORY TURNOVER RATIO(HY) Highest at 3.41 times
CASH AND EQV(HY) Highest at LKR 23,928.74 MM

With ROE of 32.45%, it has a very attractive valuation with a 6.83 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 175.88%, its profits have risen by 267.5% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.4

Consistent Returns over the last 3 years

Along with generating 175.88% returns in the last 1 year, the stock has outperformed Sri Lanka CSE All Share in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Singer (Sri Lanka) Plc should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Singer (Sri Lanka) Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Singer (Sri Lanka) Plc

176.77%

9.75

41.51%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.63%

EBIT Growth (5y)

22.72%

EBIT to Interest (avg)

1.63

Debt to EBITDA (avg)

3.54

Net Debt to Equity (avg)

2.64

Sales to Capital Employed (avg)

1.43

Tax Ratio

32.84%

Dividend Payout Ratio

28.55%

Pledged Shares

Institutional Holding

ROCE (avg)

14.74%

ROE (avg)

19.11%

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

6.83

EV to EBIT

17.59

EV to EBITDA

12.44

EV to Capital Employed

2.54

EV to Sales

1.59

PEG Ratio

0.08

Dividend Yield

0.42%

ROCE (Latest)

14.42%

ROE (Latest)

32.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

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

13What is working for the Company

ROCE(HY)

Highest at 39.43%

INVENTORY TURNOVER RATIO(HY)

Highest at 3.41 times

CASH AND EQV(HY)

Highest at LKR 23,928.74 MM

NET SALES(Q)

Highest at LKR 35,633.12 MM

PRE-TAX PROFIT(Q)

Highest at LKR 3,122.04 MM

NET PROFIT(Q)

Highest at LKR 2,024.7 MM

EPS(Q)

Highest at LKR 1.73

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at LKR -30,768.88 MM

DEBT-EQUITY RATIO (HY)

Highest at 357.45 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.84 times

INTEREST(Q)

Highest at LKR 916.3 MM

Here's what is working for Singer (Sri Lanka) Plc

Inventory Turnover Ratio

Highest at 3.41 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at LKR 35,633.12 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Pre-Tax Profit

Highest at LKR 3,122.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (LKR MM)

Net Profit

Highest at LKR 2,024.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (LKR MM)

EPS

Highest at LKR 1.73

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (LKR)

Cash and Eqv

Highest at LKR 23,928.74 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Singer (Sri Lanka) Plc

Operating Cash Flow

Lowest at LKR -30,768.88 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 (LKR MM)

Interest

At LKR 916.3 MM has Grown at 17.64%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Interest

Highest at LKR 916.3 MM

in the last five periods and Increased by 17.64% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Debt-Equity Ratio

Highest at 357.45 %

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

Debtors Turnover Ratio

Lowest at 1.84 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio