Stella International Holdings Ltd. (1836) 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

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Stella International Holdings Ltd.

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Why is Stella International Holdings Ltd. ?

Company has very low debt and has enough cash to service the debt requirements

Negative results in Dec 25

ROCE(HY) Lowest at 12.58%
INTEREST COVERAGE RATIO(Q) Lowest at 20,543.3
RAW MATERIAL COST(Y) Grown by 19.53% (YoY)

With ROE of 14.35%, it has a Fair valuation with a 1.42 Price to Book Value

Over the past year, while the stock has generated a return of -8.40%, its profits have fallen by -13.3%

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 8.76% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.40% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Stella International Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Stella International Holdings Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Stella International Holdings Ltd.

-8.4%

-0.25

27.50%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.46%

EBIT Growth (5y)

33.99%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

1.46

Tax Ratio

14.61%

Dividend Payout Ratio

112.37%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

14.11%

ROE (avg)

10.15%

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

1.42

EV to EBIT

8.54

EV to EBITDA

6.20

EV to Capital Employed

1.57

EV to Sales

0.81

PEG Ratio

Dividend Yield

0.02%

ROCE (Latest)

18.35%

ROE (Latest)

14.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 3,793.13 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 168.39%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.88 times

NET SALES(Q)

Highest at HKD 6,201.72 MM

-13What is not working for the Company

ROCE(HY)

Lowest at 12.58%

INTEREST COVERAGE RATIO(Q)

Lowest at 20,543.3

RAW MATERIAL COST(Y)

Grown by 19.53% (YoY

INTEREST(Q)

Highest at HKD 3.55 MM

OPERATING PROFIT(Q)

Lowest at HKD 729.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.76 %

PRE-TAX PROFIT(Q)

Lowest at HKD 539.03 MM

NET PROFIT(Q)

Lowest at HKD 464.32 MM

EPS(Q)

Lowest at HKD 0.55

Here's what is working for Stella International Holdings Ltd.

Operating Cash Flow

Highest at HKD 3,793.13 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 (HKD MM)

Net Sales

Highest at HKD 6,201.72 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Debtors Turnover Ratio

Highest at 5.88 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend Payout Ratio

Highest at 168.39%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Stella International Holdings Ltd.

Interest Coverage Ratio

Lowest at 20,543.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at HKD 3.55 MM

in the last five periods and Increased by 53.33% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Operating Profit

Lowest at HKD 729.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 11.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 539.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 464.32 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.55

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Raw Material Cost

Grown by 19.53% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales