Vercom SA () 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

Comp SA

Sygnity SA

Asseco South Eastern Europe SA

XPLUS SA

Vercom SA

Opteam SA

Talex SA

Comarch SA

Yarrl SA

Cloud Technologies SA

Atende SA

Why is Vercom SA ?

High Management Efficiency with a high ROCE of 23.39%

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

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

Healthy long term growth as Net Sales has grown by an annual rate of 56.45% and Operating profit at 62.57%

The company has declared Positive results for the last 9 consecutive quarters

OPERATING CASH FLOW(Y) Highest at PLN 102.46 MM
INTEREST COVERAGE RATIO(Q) Highest at 1,996.88
NET SALES(9M) At PLN 386.51 MM has Grown at 35.15%

With ROE of 23.00%, it has a fair valuation with a 7.17 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 13.53%, its profits have risen by 11% ; the PEG ratio of the company is 2.8

Underperformed the market in the last 1 year

The stock has generated a return of 13.53% in the last 1 year, much lower than market (Poland WIG) returns of 37.76%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Vercom SA should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Vercom SA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Vercom SA

11.17%

-0.06

30.50%

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)

56.45%

EBIT Growth (5y)

62.57%

EBIT to Interest (avg)

12.81

Debt to EBITDA (avg)

0.57

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

0.86

Tax Ratio

13.00%

Dividend Payout Ratio

58.69%

Pledged Shares

Institutional Holding

ROCE (avg)

23.39%

ROE (avg)

25.12%

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

7.17

EV to EBIT

26.01

EV to EBITDA

22.58

EV to Capital Employed

7.12

EV to Sales

5.48

PEG Ratio

2.83

Dividend Yield

ROCE (Latest)

27.37%

ROE (Latest)

23.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN 102.46 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,996.88

NET SALES(9M)

At PLN 386.51 MM has Grown at 35.15%

DEBT-EQUITY RATIO (HY)

Lowest at -4.97 %

NET PROFIT(Q)

Highest at PLN 22.53 MM

RAW MATERIAL COST(Y)

Fallen by -9.41% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 11.54%

OPERATING PROFIT MARGIN(Q)

Highest at 25.98 %

EPS(Q)

Highest at PLN 1.02

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Vercom SA

Interest Coverage Ratio

Highest at 1,996.88 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at PLN 102.46 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PLN MM)

Net Profit

Highest at PLN 22.53 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (PLN MM)

Debt-Equity Ratio

Lowest at -4.97 % 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

Net Sales

At PLN 386.51 MM has Grown at 35.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (PLN MM)

Operating Profit Margin

Highest at 25.98 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

EPS

Highest at PLN 1.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (PLN)

Debtors Turnover Ratio

Highest at 11.54%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -9.41% (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