The Kingsbury Plc (SERV.N0000) 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

Trans Asia Hotels Plc

Aitken Spence Plc

John Keells Hotels Plc

Asian Hotels & Properties Plc

Aitken Spence Hotel Holdings Plc

Jetwing Symphony PLC

Ceylon Hotels Corp. Plc

Hunas Holdings Plc

The Kingsbury Plc

Eden Hotel Lanka Plc

Galadari Hotels (Lanka) Plc

Why is The Kingsbury Plc ?

Poor Management Efficiency with a low ROCE of 7.32%

The company has been able to generate a Return on Capital Employed (avg) of 7.32% signifying low profitability per unit of total capital (equity and debt)

Flat results in Mar 26

NET PROFIT(Q) At LKR 80.47 MM has Fallen at -78.66%
ROCE(HY) Lowest at 15.84%
INVENTORY TURNOVER RATIO(HY) Lowest at 15.19 times

With ROE of 13.55%, it has a very expensive valuation with a 2.70 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -10.00%, its profits have fallen by -33.8%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.00% returns in the last 1 year, the stock has also underperformed Sri Lanka CSE All Share in each of the last 3 annual periods

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 Hotels & Resorts)

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

Is The Kingsbury Plc for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

The Kingsbury Plc

-10.0%

0.91

39.25%

Sri Lanka CSE All Share

11.95%

0.72

16.49%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

48.20%

EBIT Growth (5y)

22.55%

EBIT to Interest (avg)

1.45

Debt to EBITDA (avg)

4.77

Net Debt to Equity (avg)

0.81

Sales to Capital Employed (avg)

1.58

Tax Ratio

32.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.92%

ROE (avg)

9.62%

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

2.70

EV to EBIT

12.69

EV to EBITDA

9.37

EV to Capital Employed

2.28

EV to Sales

1.46

PEG Ratio

Dividend Yield

ROCE (Latest)

17.99%

ROE (Latest)

13.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at LKR 990.11 MM

DEBT-EQUITY RATIO (HY)

Lowest at 32.95 %

RAW MATERIAL COST(Y)

Fallen by -2.13% (YoY

CASH AND EQV(HY)

Highest at LKR 737.72 MM

NET SALES(Q)

Highest at LKR 1,484 MM

-13What is not working for the Company

NET PROFIT(Q)

At LKR 80.47 MM has Fallen at -78.66%

ROCE(HY)

Lowest at 15.84%

INVENTORY TURNOVER RATIO(HY)

Lowest at 15.19 times

OPERATING PROFIT MARGIN(Q)

Lowest at 13.22 %

PRE-TAX PROFIT(Q)

Fallen at -50.93%

Here's what is working for The Kingsbury Plc

Operating Cash Flow

Highest at LKR 990.11 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 (LKR MM)

Debt-Equity Ratio

Lowest at 32.95 % 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

Net Sales

Highest at LKR 1,484 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (LKR MM)

Cash and Eqv

Highest at LKR 737.72 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.13% (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 The Kingsbury Plc

Net Profit

At LKR 80.47 MM has Fallen at -78.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Operating Profit Margin

Lowest at 13.22 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -50.93%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Inventory Turnover Ratio

Lowest at 15.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio