Troax Group AB (TROAX) 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

Precomp Solutions AB

Bulten AB

SSAB AB

Alimak Group AB

Bufab AB

Beijer Alma AB

Sandvik Aktiebolag

Atlas Copco AB

SKF AB

Troax Group AB

Why is Troax Group AB ?

The company has declared Negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at SEK 390.05 MM
PRE-TAX PROFIT(Q) At SEK 25.67 MM has Fallen at -67.36%
NET PROFIT(Q) At SEK 19.25 MM has Fallen at -67.67%

With ROE of 10.36%, it has a very expensive valuation with a 3.08 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 -25.92%, its profits have fallen by -44.4%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.92% returns in the last 1 year, the stock has also underperformed OMX Stockholm 30 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 Industrial Manufacturing)

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

Is Troax Group AB for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Troax Group AB

-25.92%

-1.35

42.84%

OMX Stockholm 30

30.13%

1.89

15.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.12%

EBIT Growth (5y)

0.51%

EBIT to Interest (avg)

30.85

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

1.06

Tax Ratio

23.13%

Dividend Payout Ratio

104.05%

Pledged Shares

Institutional Holding

ROCE (avg)

26.78%

ROE (avg)

21.37%

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

3.08

EV to EBIT

17.05

EV to EBITDA

6.35

EV to Capital Employed

3.68

EV to Sales

1.89

PEG Ratio

Dividend Yield

ROCE (Latest)

21.58%

ROE (Latest)

10.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

1What is working for the Company

NET SALES(Q)

Highest at SEK 767.83 MM

-21What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at SEK 390.05 MM

PRE-TAX PROFIT(Q)

At SEK 25.67 MM has Fallen at -67.36%

NET PROFIT(Q)

At SEK 19.25 MM has Fallen at -67.67%

ROCE(HY)

Lowest at 5.44%

INTEREST(Q)

At SEK 17.11 MM has Grown at 20.21%

INTEREST COVERAGE RATIO(Q)

Lowest at 456.25

RAW MATERIAL COST(Y)

Grown by 9.76% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 87.03 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.55 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.91 times

OPERATING PROFIT(Q)

Lowest at SEK 78.07 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.17 %

Here's what is working for Troax Group AB

Net Sales

Highest at SEK 767.83 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (SEK MM)

Here's what is not working for Troax Group AB

Pre-Tax Profit

At SEK 25.67 MM has Fallen at -67.36%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SEK MM)

Net Profit

At SEK 19.25 MM has Fallen at -67.67%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SEK MM)

Operating Cash Flow

Lowest at SEK 390.05 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (SEK MM)

Interest

At SEK 17.11 MM has Grown at 20.21%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (SEK MM)

Interest Coverage Ratio

Lowest at 456.25

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at SEK 78.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (SEK MM)

Operating Profit Margin

Lowest at 10.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 87.03 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 5.55 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.91 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 9.76% (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