Suntech SA (SUN) 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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Suntech SA

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Why is Suntech SA ?

High Management Efficiency with a high ROE of 29.60%

Company has a low Debt to Equity ratio (avg) at times

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

NET SALES(HY) At PLN 17.45 MM has Grown at -21.44%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DIVIDEND PER SHARE(HY) Lowest at PLN 2.12

With ROE of -0.09%, it has a risky valuation with a 0.93 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 -34.01%, its profits have fallen by -100.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -34.01% returns in the last 1 year, the stock has also underperformed Poland WIG in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Suntech SA should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Suntech SA for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Suntech SA

-34.01%

-1.49

48.74%

Poland WIG

27.62%

1.38

19.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.52%

EBIT Growth (5y)

-6.60%

EBIT to Interest (avg)

5.00

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.55

Tax Ratio

9.58%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

32.85%

ROE (avg)

29.60%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.93

EV to EBIT

24.73

EV to EBITDA

9.55

EV to Capital Employed

0.93

EV to Sales

0.62

PEG Ratio

Dividend Yield

1.88%

ROCE (Latest)

3.78%

ROE (Latest)

-0.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN -0.48 MM

RAW MATERIAL COST(Y)

Fallen by -236.65% (YoY

OPERATING PROFIT(Q)

Highest at PLN 1.66 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.51 %

PRE-TAX PROFIT(Q)

Highest at PLN 1.15 MM

NET PROFIT(Q)

Highest at PLN 1.18 MM

-17What is not working for the Company

NET SALES(HY)

At PLN 17.45 MM has Grown at -21.44%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at PLN 2.12

INTEREST(Q)

Highest at PLN 1.25 MM

Here's what is working for Suntech SA

Net Profit

At PLN 1.18 MM has Grown at 552.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PLN MM)

Operating Cash Flow

Highest at PLN -0.48 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 (PLN MM)

Pre-Tax Profit

At PLN 1.15 MM has Grown at 274.35%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (PLN MM)

Operating Profit

Highest at PLN 1.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PLN MM)

Operating Profit Margin

Highest at 17.51 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PLN 1.15 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PLN MM)

Net Profit

Highest at PLN 1.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PLN MM)

Raw Material Cost

Fallen by -236.65% (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 Suntech SA

Interest

At PLN 1.25 MM has Grown at 648.12%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Net Sales

At PLN 17.45 MM has Grown at -21.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (PLN MM)

Interest

Highest at PLN 1.25 MM

in the last five periods and Increased by 648.12% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Dividend per share

Lowest at PLN 2.12

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (PLN)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)