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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Comp SA

Vercom SA

Sygnity SA

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XPLUS SA

Talex SA

Opteam SA

Yarrl SA

Comarch 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 108.89 MM
ROCE(HY) Highest at 23.24%
RAW MATERIAL COST(Y) Fallen by -44.43% (YoY)

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 -5.21%, its profits have risen by 11% ; the PEG ratio of the company is 2.8

Underperformed the market in the last 1 year

Even though the market (Poland WIG) has generated returns of 27.62% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -5.21% returns

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

-5.21%

-0.48

35.59%

Poland WIG

27.62%

1.38

19.95%

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

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN 108.89 MM

ROCE(HY)

Highest at 23.24%

RAW MATERIAL COST(Y)

Fallen by -44.43% (YoY

-6What is not working for the Company

INTEREST(Q)

At PLN 1.44 MM has Grown at 11.75%

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.25 times

NET SALES(Q)

Fallen at -19.7%

Here's what is working for Vercom SA

Operating Cash Flow

Highest at PLN 108.89 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)

Raw Material Cost

Fallen by -44.43% (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

Here's what is not working for Vercom SA

Interest

At PLN 1.44 MM has Grown at 11.75%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Net Sales

Fallen at -19.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (PLN MM)

Debtors Turnover Ratio

Lowest at 8.25 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio