The Becker Milk Co. Ltd. (BEK.B) 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

Loblaw Cos. Ltd.

The Becker Milk Co. Ltd.

Metro, Inc.

Empire Co. Ltd.

George Weston Ltd.

Nepra Foods, Inc.

Sensible Meats, Inc.

Why is The Becker Milk Co. Ltd. ?

Flat results in Apr 25

NET PROFIT(Q) At CAD 0.14 MM has Fallen at -65.29%
OPERATING CASH FLOW(Y) Lowest at CAD 0.71 MM
CASH AND EQV(HY) Lowest at CAD 6.52 MM

With ROE of 5.38%, it has a very attractive valuation with a 0.49 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 -2.26%, its profits have risen by 85% ; the PEG ratio of the company is 0.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -2.26% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The Becker Milk Co. Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is The Becker Milk Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Becker Milk Co. Ltd.

-1.44%

0.28

20.18%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.07%

EBIT Growth (5y)

-0.18%

EBIT to Interest (avg)

1.07

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.09

Tax Ratio

17.04%

Dividend Payout Ratio

50.80%

Pledged Shares

Institutional Holding

ROCE (avg)

3.89%

ROE (avg)

3.20%

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

0.70

EV to EBIT

19.27

EV to EBITDA

19.27

EV to Capital Employed

0.67

EV to Sales

6.92

PEG Ratio

Dividend Yield

ROCE (Latest)

3.47%

ROE (Latest)

2.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

2What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 61.54 times

-7What is not working for the Company

NET PROFIT(Q)

At CAD 0.17 MM has Fallen at -62.58%

RAW MATERIAL COST(Y)

Grown by 10.18% (YoY

CASH AND EQV(HY)

Lowest at CAD 6.48 MM

PRE-TAX PROFIT(Q)

At CAD 0.22 MM has Fallen at -27.62%

EPS(Q)

Lowest at CAD 0.14

Here's what is working for The Becker Milk Co. Ltd.

Debtors Turnover Ratio

Highest at 61.54 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for The Becker Milk Co. Ltd.

Net Profit

At CAD 0.17 MM has Fallen at -62.58%

over average net sales of the previous four periods of CAD 0.45 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Pre-Tax Profit

At CAD 0.22 MM has Fallen at -27.62%

over average net sales of the previous four periods of CAD 0.3 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

EPS

Lowest at CAD 0.14

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Cash and Eqv

Lowest at CAD 6.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 10.18% (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