Vinh Hoan Corp (VHC) 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

BenTre Aquaproduct Import & Export JSC

Sa Giang Import Export Corp.

IDI International Development & Investment Corp.

HaLong Canned Food JSC

Sao Ta Foods JSC

Ca Mau Group JSC

Nam Viet Corp.

Vinh Hoan Corp

Vietnam Dairy Products Corp.

Sao Mai Group Corp.

Minh Phu Seafood Corp.

Why is Vinh Hoan Corp ?

High Management Efficiency with a high ROCE of 17.83%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 14.47

Poor long term growth as Net Sales has grown by an annual rate of 11.58% over the last 5 years

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

DEBT-EQUITY RATIO (HY) Lowest at -24.27 %
CASH AND EQV(HY) Highest at VND 8,743,912.69 MM
INVENTORY TURNOVER RATIO(HY) Highest at 3.54 times

With ROE of 16.19%, it has a very attractive valuation with a 1.30 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -13.10%, its profits have risen by 91.3% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 6.1

Majority shareholders : FIIs

Below par performance in long term as well as near term

Along with generating -13.10% returns in the last 1 year, the stock has also underperformed Vietnam VN Ho Chi Minh Index in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Vinh Hoan Corp should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in FMCG)

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

Is Vinh Hoan Corp for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Vinh Hoan Corp

-13.1%

-0.46

40.79%

Vietnam VN Ho Chi Minh Index

43.59%

1.93

22.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.58%

EBIT Growth (5y)

15.42%

EBIT to Interest (avg)

14.47

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.09

Sales to Capital Employed (avg)

1.04

Tax Ratio

13.11%

Dividend Payout Ratio

36.54%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

17.83%

ROE (avg)

17.06%

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

1.30

EV to EBIT

7.32

EV to EBITDA

5.55

EV to Capital Employed

1.36

EV to Sales

0.88

PEG Ratio

0.09

Dividend Yield

6.13%

ROCE (Latest)

18.52%

ROE (Latest)

16.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -24.27 %

CASH AND EQV(HY)

Highest at VND 8,743,912.69 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.54 times

-8What is not working for the Company

PRE-TAX PROFIT(Q)

At VND 286,471.47 MM has Fallen at -40.39%

NET PROFIT(Q)

At VND 222,216.53 MM has Fallen at -47.76%

RAW MATERIAL COST(Y)

Grown by 9.48% (YoY

NET SALES(Q)

Fallen at -15.31%

OPERATING PROFIT(Q)

Lowest at VND 274,408.36 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.11 %

Here's what is working for Vinh Hoan Corp

Debt-Equity Ratio

Lowest at -24.27 % 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

Cash and Eqv

Highest at VND 8,743,912.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.54 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Vinh Hoan Corp

Pre-Tax Profit

At VND 286,471.47 MM has Fallen at -40.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (VND MM)

Net Profit

At VND 222,216.53 MM has Fallen at -47.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (VND MM)

Net Sales

Fallen at -15.31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (VND MM)

Operating Profit

Lowest at VND 274,408.36 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (VND MM)

Operating Profit Margin

Lowest at 10.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 9.48% (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