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

Comp SA

Vercom SA

Sygnity SA

Asseco South Eastern Europe SA

XPLUS SA

Talex SA

Opteam SA

Yarrl SA

Comarch SA

Cloud Technologies 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

Poor long term growth as Net Sales has grown by an annual rate of 6.19% and Operating profit at -35.12% over the last 5 years

Positive results in Dec 25

ROCE(HY) Highest at 8.53%
NET SALES(Q) Highest at PLN 41.54 MM
OPERATING PROFIT(Q) Highest at PLN 7.85 MM

With ROE of 1.08%, it has a very expensive valuation with a 1.20 Price to Book Value

Over the past year, while the stock has generated a return of -20.98%, its profits have fallen by -81.7%

Below par performance in long term as well as near term

Along with generating -20.98% returns in the last 1 year, the stock has also underperformed Poland WIG 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 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

-20.98%

0.06

47.60%

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)

6.19%

EBIT Growth (5y)

-35.12%

EBIT to Interest (avg)

0.25

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.13

Sales to Capital Employed (avg)

1.72

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.67%

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

1.20

EV to EBIT

58.80

EV to EBITDA

19.28

EV to Capital Employed

1.20

EV to Sales

0.67

PEG Ratio

Dividend Yield

1.28%

ROCE (Latest)

0.84%

ROE (Latest)

1.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

14What is working for the Company

ROCE(HY)

Highest at 8.53%

NET SALES(Q)

Highest at PLN 41.54 MM

OPERATING PROFIT(Q)

Highest at PLN 7.85 MM

OPERATING PROFIT MARGIN(Q)

Highest at 18.9 %

-7What is not working for the Company

PRE-TAX PROFIT(Q)

At PLN 0 MM has Fallen at -100%

OPERATING CASH FLOW(Y)

Lowest at PLN -1.39 MM

RAW MATERIAL COST(Y)

Grown by 36.75% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

Here's what is working for Talex SA

Net Sales

At PLN 41.54 MM has Grown at 97.42%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (PLN MM)

Net Sales

Highest at PLN 41.54 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PLN MM)

Operating Profit

Highest at PLN 7.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PLN MM)

Operating Profit Margin

Highest at 18.9 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Here's what is not working for Talex SA

Pre-Tax Profit

At PLN 0 MM has Fallen at -100%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PLN MM)

Operating Cash Flow

Lowest at PLN -1.39 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PLN MM)

Debtors Turnover Ratio

Lowest at 0 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 36.75% (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