Tokyo Cement Co. (Lanka) Plc (TKYO.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

Vallibel One Plc

Tokyo Cement Co. (Lanka) Plc

Why is Tokyo Cement Co. (Lanka) Plc ?

Poor long term growth as Net Sales has grown by an annual rate of 7.66% over the last 5 years

INTEREST COVERAGE RATIO(Q) Lowest at 246.41
RAW MATERIAL COST(Y) Grown by 17.98% (YoY)
INTEREST(Q) Highest at LKR 404.09 MM

With ROE of 11.15%, it has a fair valuation with a 1.25 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 32.59%, its profits have risen by 51.1% ; the PEG ratio of the company is 0.2

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 Building Products)

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

Is Tokyo Cement Co. (Lanka) Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Tokyo Cement Co. (Lanka) Plc

31.29%

3.82

27.66%

Sri Lanka CSE All Share

41.16%

2.63

15.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.66%

EBIT Growth (5y)

-10.49%

EBIT to Interest (avg)

4.63

Debt to EBITDA (avg)

1.10

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.21

Tax Ratio

27.45%

Dividend Payout Ratio

28.75%

Pledged Shares

Institutional Holding

0.10%

ROCE (avg)

19.04%

ROE (avg)

12.86%

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

1.25

EV to EBIT

11.26

EV to EBITDA

7.88

EV to Capital Employed

1.19

EV to Sales

0.95

PEG Ratio

0.22

Dividend Yield

ROCE (Latest)

10.56%

ROE (Latest)

11.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 6.47 times

DEBTORS TURNOVER RATIO(HY)

Highest at 11.77 times

-17What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 246.41

RAW MATERIAL COST(Y)

Grown by 17.98% (YoY

INTEREST(Q)

Highest at LKR 404.09 MM

OPERATING PROFIT(Q)

Lowest at LKR 995.72 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.86 %

PRE-TAX PROFIT(Q)

Lowest at LKR 583.21 MM

NET PROFIT(Q)

Lowest at LKR 330.98 MM

EPS(Q)

Lowest at LKR 0.75

Here's what is working for Tokyo Cement Co. (Lanka) Plc

Inventory Turnover Ratio

Highest at 6.47 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 11.77 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Depreciation

Highest at LKR 608.09 MM

in the last five periods

MOJO Watch

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

Depreciation (LKR MM)

Here's what is not working for Tokyo Cement Co. (Lanka) Plc

Interest Coverage Ratio

Lowest at 246.41

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At LKR 583.21 MM has Fallen at -48.98%

over average net sales of the previous four periods of LKR 1,143.2 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (LKR MM)

Net Profit

At LKR 330.98 MM has Fallen at -60.38%

over average net sales of the previous four periods of LKR 835.32 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (LKR MM)

Interest

Highest at LKR 404.09 MM

in the last five periods and Increased by 6.29% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (LKR MM)

Operating Profit

Lowest at LKR 995.72 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (LKR MM)

Operating Profit Margin

Lowest at 6.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at LKR 583.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (LKR MM)

Net Profit

Lowest at LKR 330.98 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (LKR MM)

EPS

Lowest at LKR 0.75

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (LKR)

Raw Material Cost

Grown by 17.98% (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

Non Operating Income

Highest at LKR 1.03 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income