The Hub Power Co. Ltd. (HUBC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The Hub Power Co. Ltd.

Lalpir Power Ltd.

Engro Powergen Qadirpur Ltd.

Kot Addu Power Co. Ltd.

Pakgen Power Ltd.

Nishat Chunian Power Ltd.

Saif Power Ltd.

Nishat Power Ltd.

Altern Energy Ltd.

K-Electric Ltd.

Why is The Hub Power Co. Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at 0 times

Poor long term growth as Net Sales has grown by an annual rate of 14.65% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 0 times
The company has been able to generate a Return on Capital Employed (avg) of 16.91% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 14.65% over the last 5 years

Negative results in Mar 25

NET SALES(Q) At PKR 17,060 has Fallen at -46.34%
NET PROFIT(HY) At PKR 15,950.93 MM has Grown at -50.84%
RAW MATERIAL COST(Y) Grown by 20.92% (YoY)

With ROE of 29, it has a expensive valuation with a 0.9 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 0%, its profits have fallen by -23.9%
At the current price, the company has a high dividend yield of 9.6

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Hub Power Co. Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

The Hub Power Co. Ltd.

-100.0%

0.03

40.89%

Pakistan KSE 100 Share

60.28%

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)

6.56%

EBIT Growth (5y)

-4.09%

EBIT to Interest (avg)

3.19

Debt to EBITDA (avg)

2.45

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

0.35

Tax Ratio

48.65%

Dividend Payout Ratio

42.18%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

16.91%

ROE (avg)

35.22%

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

1.29

EV to EBIT

9.77

EV to EBITDA

8.43

EV to Capital Employed

1.24

EV to Sales

4.03

PEG Ratio

Dividend Yield

6.84%

ROCE (Latest)

12.66%

ROE (Latest)

23.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

OPERATING CASH FLOW(Y)

Highest at PKR 91,692.65 MM

DEBT-EQUITY RATIO (HY)

Lowest at 31.59 %

CASH AND EQV(HY)

Highest at PKR 63,198.46 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 1.1%

-14What is not working for the Company

NET SALES(Q)

At PKR 17,060 MM has Fallen at -46.34%

NET PROFIT(HY)

At PKR 15,950.93 MM has Grown at -50.84%

RAW MATERIAL COST(Y)

Grown by 20.92% (YoY

PRE-TAX PROFIT(Q)

Fallen at -45.36%

Here's what is working for The Hub Power Co. Ltd.

Operating Cash Flow

Highest at PKR 91,692.65 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PKR MM)

Debt-Equity Ratio

Lowest at 31.59 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at PKR 63,198.46 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 1.1%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

At PKR 1,452.68 MM has Grown at 38.73%

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 (PKR MM)

Here's what is not working for The Hub Power Co. Ltd.

Net Sales

At PKR 17,060 MM has Fallen at -46.34%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (PKR MM)

Net Profit

At PKR 15,950.93 MM has Grown at -50.84%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

Pre-Tax Profit

Fallen at -45.36%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PKR MM)

Raw Material Cost

Grown by 20.92% (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