Talex SA (TLX) 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

Opteam SA

Sygnity SA

Talex SA

XPLUS SA

Asseco South Eastern Europe SA

Comp SA

Vercom SA

Yarrl SA

Cloud Technologies SA

Comarch SA

Atende SA

Why is Talex SA ?

Poor Management Efficiency with a low ROE of 2.88%

The company has been able to generate a Return on Equity (avg) of 2.88% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.25

Poor long term growth as Net Sales has grown by an annual rate of 7.01% and Operating profit at 55.32% over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.25
The company has been able to generate a Return on Equity (avg) of 2.88% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.01% and Operating profit at 55.32% over the last 5 years

Flat results in Mar 26

RAW MATERIAL COST(Y) Grown by 24.83% (YoY)
OPERATING PROFIT(Q) Lowest at PLN -0.65 MM
OPERATING PROFIT MARGIN(Q) Lowest at -3.86 %

With ROE of 8.08%, it has a very attractive valuation with a 1.01 Price to Book Value

Over the past year, while the stock has generated a return of -14.08%, its profits have risen by 462% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Talex SA 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 Talex SA for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Talex SA

-18.75%

0.07

40.79%

Poland WIG

37.09%

2.22

16.70%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.01%

EBIT Growth (5y)

55.32%

EBIT to Interest (avg)

1.88

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

1.80

Tax Ratio

1.00%

Dividend Payout Ratio

81.27%

Pledged Shares

Institutional Holding

ROCE (avg)

5.62%

ROE (avg)

2.88%

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

1.01

EV to EBIT

5.44

EV to EBITDA

4.10

EV to Capital Employed

1.01

EV to Sales

0.36

PEG Ratio

0.01

Dividend Yield

6.70%

ROCE (Latest)

18.61%

ROE (Latest)

8.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

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

7What is working for the Company

NET SALES(HY)

At PLN 58.48 MM has Grown at 61.4%

INVENTORY TURNOVER RATIO(HY)

Highest at 72.84 times

-7What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 24.83% (YoY

OPERATING PROFIT(Q)

Lowest at PLN -0.65 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.86 %

PRE-TAX PROFIT(Q)

Lowest at PLN -1.63 MM

EPS(Q)

Lowest at PLN -0.45

Here's what is working for Talex SA

Net Sales

At PLN 58.48 MM has Grown at 61.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (PLN MM)

Inventory Turnover Ratio

Highest at 72.84 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at PLN 1 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (PLN MM)

Depreciation

At PLN 1 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (PLN MM)

Here's what is not working for Talex SA

Operating Profit

Lowest at PLN -0.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PLN MM)

Operating Profit Margin

Lowest at -3.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at PLN -1.63 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PLN MM)

EPS

Lowest at PLN -0.45

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PLN)

Raw Material Cost

Grown by 24.83% (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