South Logistics JSC (STG) 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

Hai An Transport & Stevedoring JSC

Noi Bai Cargo Terminal Services JSC

Taseco Air Services JSC

Da Nang Port JSC

Dong Nai Port JSC

GEMADEPT Corp.

South Logistics JSC

Sai Gon Ground Services JSC

Cat Lai Port JSC

CII Bridges & Roads Investment JSC

Airports Corp. of Vietnam

Why is South Logistics JSC ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 12.99

Poor long term growth as Net Sales has grown by an annual rate of 6.77% over the last 5 years

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at VND 225,053.29 MM
INTEREST(HY) At VND 9,779.03 MM has Grown at 53.12%
NET SALES(Q) At VND 556,920.34 MM has Fallen at -9.22%

With ROE of 10.41%, it has a expensive valuation with a 1.63 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 -24.88%, its profits have risen by 40.2% ; the PEG ratio of the company is 0.4

Below par performance in long term as well as near term

Along with generating -24.88% returns in the last 1 year, the stock has also underperformed Vietnam VN Ho Chi Minh Index in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to South Logistics JSC should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

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

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

Is South Logistics JSC for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

South Logistics JSC

-20.93%

-0.52

54.68%

Vietnam VN Ho Chi Minh Index

29.95%

1.61

21.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.77%

EBIT Growth (5y)

11.52%

EBIT to Interest (avg)

12.99

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

0.90

Tax Ratio

24.66%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.63%

ROE (avg)

10.49%

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

1.63

EV to EBIT

18.20

EV to EBITDA

10.64

EV to Capital Employed

1.67

EV to Sales

1.46

PEG Ratio

0.39

Dividend Yield

ROCE (Latest)

9.18%

ROE (Latest)

10.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

10What is working for the Company

NET SALES(HY)

At VND 1,262,872.42 MM has Grown at 25.51%

RAW MATERIAL COST(Y)

Fallen by -4.3% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 40.31%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.68%

OPERATING PROFIT MARGIN(Q)

Highest at 15.35 %

NET PROFIT(Q)

Highest at VND 56,497.96 MM

EPS(Q)

Highest at VND 575.02

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at VND 225,053.29 MM

INTEREST(HY)

At VND 9,779.03 MM has Grown at 53.12%

NET SALES(Q)

At VND 556,920.34 MM has Fallen at -9.22%

Here's what is working for South Logistics JSC

Operating Profit Margin

Highest at 15.35 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at VND 56,497.96 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (VND MM)

EPS

Highest at VND 575.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (VND)

Inventory Turnover Ratio

Highest at 40.31%

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 5.68%

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 -4.3% (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 South Logistics JSC

Interest

At VND 9,779.03 MM has Grown at 53.12%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (VND MM)

Operating Cash Flow

Lowest at VND 225,053.29 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 (VND MM)

Net Sales

At VND 556,920.34 MM has Fallen at -9.22%

over average net sales of the previous four periods of VND 613,506.63 MM

MOJO Watch

Near term sales trend is negative

Net Sales (VND MM)