United Foodbrands Ltd (UFBL) 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

Speciality Rest.

Delta Corp

Wonderla Holiday

Sapphire Foods

Nicco Parks

Coffee Day Enter

Gourmet Gateway

Imagica. Enter.

Kaya Ltd

Restaurant Brand

United Foodbrand

Why is United Foodbrands Ltd ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.82%

Poor long term growth as Net Sales has grown by an annual rate of 13.24% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 3.34 times

The company has declared negative results for the last 3 consecutive quarters

OPERATING CF(Y) Lowest at Rs 147.07 Cr
PAT(Q) At Rs -22.22 cr has Fallen at -126.0% (vs previous 4Q average)
ROCE(HY) Lowest at 2.54%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -66.01% returns in the last 1 year, the stock has also underperformed BSE500 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 Leisure Services)

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

Is United Foodbrand for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

United Foodbrand

-66.01%

-1.70

38.84%

Sensex

3.87%

0.33

11.85%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.24%

EBIT Growth (5y)

32.38%

EBIT to Interest (avg)

0.52

Debt to EBITDA (avg)

4.62

Net Debt to Equity (avg)

2.45

Sales to Capital Employed (avg)

1.01

Tax Ratio

5.57%

Dividend Payout Ratio

Pledged Shares

0.65%

Institutional Holding

28.30%

ROCE (avg)

2.17%

ROE (avg)

1.67%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.12

EV to EBIT

146.13

EV to EBITDA

7.54

EV to Capital Employed

1.33

EV to Sales

1.22

PEG Ratio

Dividend Yield

ROCE (Latest)

0.91%

ROE (Latest)

-16.58%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-21What is not working for the Company

OPERATING CF(Y)

Lowest at Rs 147.07 Cr

PAT(Q)

At Rs -22.22 cr has Fallen at -126.0% (vs previous 4Q average

ROCE(HY)

Lowest at 2.54%

OPERATING PROFIT TO INTEREST (Q)

Lowest at 1.82 times

DEBT-EQUITY RATIO(HY)

Highest at 2.52 times

PBDIT(Q)

Lowest at Rs 37.74 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 12.38%

PBT LESS OI(Q)

Lowest at Rs -31.24 cr.

EPS(Q)

Lowest at Rs -5.69

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Here's what is not working for United Foodbrand

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs -31.24 cr has Fallen at -132.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -13.44 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs -22.22 cr has Fallen at -126.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs -9.83 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Cash Flow - Annually

Lowest at Rs 147.07 Cr and Fallen

each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 1.82 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 37.74 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 12.38%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs -31.24 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is negative

PBT less Other Income (Rs Cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs -5.69

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Debt-Equity Ratio - Half Yearly

Highest at 2.52 times

in the last five half yearly periods

MOJO Watch

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

Debt-Equity Ratio

Non Operating Income - Quarterly

Highest at Rs 8.08 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income