Trakcja SA (TRK) 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

Polimex-Mostostal SA

TORPOL SA

Dekpol SA

ONDE SA

Stalexport Autostrady SA

Trakcja SA

Mostostal Zabrze SA

Budimex SA

Mirbud SA

ERBUD SA

Poznanska Korporacja Budowlana Pekabex SA

Why is Trakcja SA ?

Poor Management Efficiency with a low ROCE of 81.86%

The company has been able to generate a Return on Capital Employed (avg) of 81.86% signifying low profitability per unit of total capital (equity and debt)

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

Poor long term growth as Net Sales has grown by an annual rate of 11.11% and Operating profit at 24.44% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.52% signifying low profitability per unit of shareholders funds

Positive results in Mar 25

DEBT-EQUITY RATIO (HY) Lowest at -45.69 %
INVENTORY TURNOVER RATIO(HY) Highest at 14.9%
CASH AND EQV(HY) Highest at PLN 673.19 MM

With ROE of 10.23%, it has a expensive valuation with a 3.30 Price to Book Value

Over the past year, while the stock has generated a return of 75.76%, its profits have fallen by -40.9%

Market Beating performance in long term as well as near term

Along with generating 75.76% returns in the last 1 year, the stock has outperformed 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 Trakcja SA should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Trakcja SA for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Trakcja SA

79.21%

0.90

41.81%

Poland WIG

39.24%

1.84

20.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.11%

EBIT Growth (5y)

24.44%

EBIT to Interest (avg)

-0.58

Debt to EBITDA (avg)

2.79

Net Debt to Equity (avg)

-0.58

Sales to Capital Employed (avg)

4.51

Tax Ratio

2.17%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

81.86%

ROE (avg)

6.52%

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

3.30

EV to EBIT

17.19

EV to EBITDA

10.92

EV to Capital Employed

4.18

EV to Sales

0.48

PEG Ratio

Dividend Yield

ROCE (Latest)

24.33%

ROE (Latest)

10.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

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

6What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -45.69 %

INVENTORY TURNOVER RATIO(HY)

Highest at 14.9%

CASH AND EQV(HY)

Highest at PLN 673.19 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.8%

-9What is not working for the Company

NET PROFIT(HY)

At PLN 14.99 MM has Grown at -54.81%

RAW MATERIAL COST(Y)

Grown by 624% (YoY

NET SALES(Q)

Lowest at PLN 301.91 MM

OPERATING PROFIT(Q)

Lowest at PLN -6.71 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.22 %

PRE-TAX PROFIT(Q)

Lowest at PLN -16.08 MM

Here's what is working for Trakcja SA

Debt-Equity Ratio

Lowest at -45.69 % 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

Inventory Turnover Ratio

Highest at 14.9% and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at PLN 673.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4.8%

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 Trakcja SA

Net Profit

At PLN 14.99 MM has Grown at -54.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PLN MM)

Net Sales

Lowest at PLN 301.91 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (PLN MM)

Operating Profit

Lowest at PLN -6.71 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PLN MM)

Operating Profit Margin

Lowest at -2.22 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at PLN -16.08 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PLN MM)

Raw Material Cost

Grown by 624% (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