Unilever Pakistan Foods Ltd. (UPFL) 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

National Foods Ltd. (Pakistan)

Al-Abbas Sugar Mills Ltd.

JDW Sugar Mills Ltd.

Habib Sugar Mills Ltd.

Frieslandcampina Engro Pakistan Ltd.

Unity Foods Ltd.

Unilever Pakistan Foods Ltd.

Fauji Foods Ltd.

Ismail Industries Ltd.

Mitchell's Fruit Farms Ltd.

Shakarganj Ltd.

Why is Unilever Pakistan Foods Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 80.27%

Healthy long term growth as Operating profit has grown by an annual rate 23.10%
Company has very low debt and has enough cash to service the debt requirements

With ROE of 45.3, it has a very attractive valuation with a 9.9 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 0%, its profits have fallen by -16.8%
At the current price, the company has a high dividend yield of 9.7

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 FMCG)

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

Is Unilever Pakistan Foods Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Unilever Pakistan Foods Ltd.

27.48%

1.74

15.93%

Pakistan KSE 100 Share

26.26%

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)

21.11%

EBIT Growth (5y)

17.57%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.81

Sales to Capital Employed (avg)

2.89

Tax Ratio

33.15%

Dividend Payout Ratio

176.77%

Pledged Shares

Institutional Holding

ROCE (avg)

298.13%

ROE (avg)

80.27%

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

20.36

EV to EBIT

21.44

EV to EBITDA

20.12

EV to Capital Employed

42.01

EV to Sales

5.08

PEG Ratio

Dividend Yield

6.99%

ROCE (Latest)

195.94%

ROE (Latest)

67.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 17,210.47

RAW MATERIAL COST(Y)

Fallen by 0.16% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.51 times

NET SALES(Q)

Highest at PKR 10,493.82 MM

-9What is not working for the Company

INTEREST(HY)

At PKR 47.08 MM has Grown at 76.3%

DEBT-EQUITY RATIO (HY)

Highest at -41.81 %

OPERATING PROFIT MARGIN(Q)

Lowest at 23.71 %

Here's what is working for Unilever Pakistan Foods Ltd.

Interest Coverage Ratio

Highest at 17,210.47

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at PKR 10,493.82 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (PKR MM)

Inventory Turnover Ratio

Highest at 6.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by 0.16% (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

Depreciation

Highest at PKR 164.4 MM

in the last five periods

MOJO Watch

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

Depreciation (PKR MM)

Here's what is not working for Unilever Pakistan Foods Ltd.

Interest

At PKR 47.08 MM has Grown at 76.3%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Operating Profit Margin

Lowest at 23.71 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -41.81 %

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