Swedencare AB (SECARE) 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

Swedish Orphan Biovitrum AB

BioArctic AB

Swedencare AB

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Vicore Pharma Holding AB

Xspray Pharma AB

Infant Bacterial Therapeutics AB

FluoGuide A/S

Why is Swedencare AB ?

High Management Efficiency with a high ROCE of 3.19%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.42

Healthy long term growth as Net Sales has grown by an annual rate of 62.07% and Operating profit at 17.17%

OPERATING CASH FLOW(Y) Lowest at SEK 326.8 MM
PRE-TAX PROFIT(Q) At SEK 12.4 MM has Fallen at -70.33%
ROCE(HY) Lowest at 0.76%

With ROE of 1.02%, it has a attractive valuation with a 0.76 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 -38.25%, its profits have fallen by -7.6%
At the current price, the company has a high dividend yield of 376.7

Below par performance in long term as well as near term

Along with generating -38.25% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 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 Swedencare AB should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

Is Swedencare AB for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Swedencare AB

-38.25%

-1.14

54.25%

OMX Stockholm 30

10.97%

0.59

18.59%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

62.07%

EBIT Growth (5y)

17.17%

EBIT to Interest (avg)

9.42

Debt to EBITDA (avg)

2.65

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.28

Tax Ratio

37.58%

Dividend Payout Ratio

80.53%

Pledged Shares

Institutional Holding

ROCE (avg)

3.19%

ROE (avg)

2.39%

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

0.76

EV to EBIT

38.71

EV to EBITDA

13.96

EV to Capital Employed

0.80

EV to Sales

2.62

PEG Ratio

Dividend Yield

376.73%

ROCE (Latest)

2.08%

ROE (Latest)

1.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

5What is working for the Company

NET PROFIT(HY)

Higher at SEK 38.6 MM

DIVIDEND PER SHARE(HY)

Highest at SEK 6.08

DIVIDEND PAYOUT RATIO(Y)

Highest at 272.9%

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 326.8 MM

PRE-TAX PROFIT(Q)

At SEK 12.4 MM has Fallen at -70.33%

ROCE(HY)

Lowest at 0.76%

RAW MATERIAL COST(Y)

Grown by 61.36% (YoY

CASH AND EQV(HY)

Lowest at SEK 248.1 MM

DEBT-EQUITY RATIO (HY)

Highest at 25.52 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.08 times

NET PROFIT(Q)

Fallen at -31.09%

Here's what is working for Swedencare AB

Dividend per share

Highest at SEK 6.08 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (SEK)

Dividend Payout Ratio

Highest at 272.9%

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 Swedencare AB

Pre-Tax Profit

At SEK 12.4 MM has Fallen at -70.33%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Operating Cash Flow

Lowest at SEK 326.8 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 (SEK MM)

Net Profit

Fallen at -31.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SEK MM)

Cash and Eqv

Lowest at SEK 248.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 25.52 %

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 6.08 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 61.36% (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