Systems Ltd. (SYS) 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

Netsol Technologies Ltd.

Systems Ltd.

Octopus Digital Ltd.

Why is Systems Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 26.58%

Healthy long term growth as Net Sales has grown by an annual rate of 53.84% and Operating profit at 44.41%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 21.38

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at PKR 3,159.17 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 2.69%

With ROE of 20.7, it has a expensive valuation with a 3.8 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 0%, its profits have risen by 22.1% ; the PEG ratio of the company is 0.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Systems Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

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

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

Is Systems Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Systems Ltd.

-77.04%

-0.84

90.52%

Pakistan KSE 100 Share

26.26%

2.81

22.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

53.01%

EBIT Growth (5y)

41.33%

EBIT to Interest (avg)

21.38

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

1.57

Tax Ratio

4.57%

Dividend Payout Ratio

23.48%

Pledged Shares

Institutional Holding

ROCE (avg)

36.02%

ROE (avg)

26.58%

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

5.34

EV to EBIT

23.66

EV to EBITDA

19.95

EV to Capital Employed

6.46

EV to Sales

3.01

PEG Ratio

Dividend Yield

0.15%

ROCE (Latest)

27.30%

ROE (Latest)

22.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

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

12What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 4,865.74

RAW MATERIAL COST(Y)

Fallen by -18.71% (YoY

CASH AND EQV(HY)

Highest at PKR 20,308.86 MM

DEBT-EQUITY RATIO (HY)

Lowest at -17.65 %

NET SALES(Q)

Highest at PKR 20,680.16 MM

OPERATING PROFIT(Q)

Highest at PKR 3,893.77 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.83 %

PRE-TAX PROFIT(Q)

Highest at PKR 3,244.66 MM

NET PROFIT(Q)

Highest at PKR 3,076.47 MM

EPS(Q)

Highest at PKR 1.88

-2What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.62 times

Here's what is working for Systems Ltd.

Interest Coverage Ratio

Highest at 4,865.74

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 PKR 20,680.16 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Operating Profit

Highest at PKR 3,893.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Operating Profit Margin

Highest at 18.83 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at PKR 3,244.66 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PKR MM)

Net Profit

Highest at PKR 3,076.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

EPS

Highest at PKR 1.88

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PKR)

Cash and Eqv

Highest at PKR 20,308.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -17.65 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -18.71% (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 Systems Ltd.

Debtors Turnover Ratio

Lowest at 2.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio