Softlogic Life Insurance Plc (AAIC.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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Janashakthi Insurance Co. Plc

Softlogic Life Insurance Plc

HNB Assurance Plc

Union Assurance Plc

Why is Softlogic Life Insurance Plc ?

Healthy long term growth as Net Sales has grown by an annual rate of 24.70%

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at LKR 6,766.8 MM
INTEREST COVERAGE RATIO(Q) Highest at 92.02
DIVIDEND PAYOUT RATIO(Y) Highest at 191.5%

With ROE of 37.88%, it has a very attractive valuation with a 2.06 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 16.88%, its profits have risen by 59% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.3

Underperformed the market in the last 1 year

The stock has generated a return of 16.88% in the last 1 year, much lower than market (Sri Lanka CSE All Share) returns of 60.36%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Softlogic Life Insurance Plc should be less than 10%
Overall Portfolio exposure to Insurance should be less than 30%

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

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

Is Softlogic Life Insurance Plc for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Softlogic Life Insurance Plc

-100.0%

0.49

35.21%

Sri Lanka CSE All Share

60.36%

3.50

17.24%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.70%

EBIT Growth (5y)

EBIT to Interest (avg)

0.79

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

28.59%

Dividend Payout Ratio

35.68%

Pledged Shares

Institutional Holding

ROCE (avg)

6.03%

ROE (avg)

27.97%

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

2.06

EV to EBIT

EV to EBITDA

37.88

EV to Capital Employed

2.88

EV to Sales

0.50

PEG Ratio

0.06

Dividend Yield

0.30%

ROCE (Latest)

ROE (Latest)

37.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 6,766.8 MM

INTEREST COVERAGE RATIO(Q)

Highest at 92.02

DIVIDEND PAYOUT RATIO(Y)

Highest at 191.5%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 8.89 %

DIVIDEND PER SHARE(HY)

Highest at LKR 0

NET SALES(Q)

Highest at LKR 11,148.55 MM

-8What is not working for the Company

PRE-TAX PROFIT(Q)

Fallen at -43.91%

NET PROFIT(Q)

Fallen at -44.22%

Here's what is working for Softlogic Life Insurance Plc

Operating Cash Flow

Highest at LKR 6,766.8 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 (LKR MM)

Interest Coverage Ratio

Highest at 92.02

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 LKR 11,148.55 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Debt-Equity Ratio

Lowest at 8.89 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at LKR 0

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (LKR)

Dividend Payout Ratio

Highest at 191.5%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0% (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 LKR 148.72 MM

in the last five periods

MOJO Watch

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

Depreciation (LKR MM)

Depreciation

At LKR 148.72 MM has Grown at 29.82%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (LKR MM)

Here's what is not working for Softlogic Life Insurance Plc

Pre-Tax Profit

Fallen at -43.91%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Net Profit

Fallen at -44.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)