VRG SA (VRG) 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

VRG SA

Sanwil Holding SA

Wojas SA

Protektor SA

ESOTIQ & Henderson SA

Solar Co. SA

Why is VRG SA ?

Poor Management Efficiency with a low ROCE of 8.43%

The company has been able to generate a Return on Capital Employed (avg) of 8.43% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.02 times

Poor long term growth as Net Sales has grown by an annual rate of 13.61% and Operating profit at 131.99% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.02 times
The company has been able to generate a Return on Equity (avg) of 6.39% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 13.61% and Operating profit at 131.99% over the last 5 years

OPERATING CASH FLOW(Y) Highest at PLN 265.68 MM
ROCE(HY) Highest at 9.44%
RAW MATERIAL COST(Y) Fallen by -5.15% (YoY)

With ROE of 7.81%, it has a expensive valuation with a 1.08 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 4.72%, its profits have risen by 1% ; the PEG ratio of the company is 13.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to VRG SA should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is VRG SA for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

VRG SA

-100.0%

1.81

26.49%

Poland WIG

43.29%

2.67

16.21%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.61%

EBIT Growth (5y)

131.99%

EBIT to Interest (avg)

5.40

Debt to EBITDA (avg)

0.65

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

1.10

Tax Ratio

21.27%

Dividend Payout Ratio

11.93%

Pledged Shares

Institutional Holding

ROCE (avg)

11.45%

ROE (avg)

6.39%

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

1.08

EV to EBIT

9.92

EV to EBITDA

5.18

EV to Capital Employed

1.06

EV to Sales

0.97

PEG Ratio

13.81

Dividend Yield

ROCE (Latest)

10.72%

ROE (Latest)

7.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN 265.68 MM

ROCE(HY)

Highest at 9.44%

RAW MATERIAL COST(Y)

Fallen by -5.15% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 85.29 times

OPERATING PROFIT(Q)

Highest at PLN 100.06 MM

OPERATING PROFIT MARGIN(Q)

Highest at 22.98 %

PRE-TAX PROFIT(Q)

At PLN 55.19 MM has Grown at 91.48%

NET PROFIT(Q)

At PLN 45.01 MM has Grown at 97.83%

-4What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 41.59 %

INTEREST(Q)

Highest at PLN 6.56 MM

Here's what is working for VRG SA

Operating Cash Flow

Highest at PLN 265.68 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PLN MM)

Operating Profit

Highest at PLN 100.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PLN MM)

Operating Profit Margin

Highest at 22.98 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At PLN 55.19 MM has Grown at 91.48%

over average net sales of the previous four periods of PLN 28.82 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (PLN MM)

Net Profit

At PLN 45.01 MM has Grown at 97.83%

over average net sales of the previous four periods of PLN 22.75 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PLN MM)

Debtors Turnover Ratio

Highest at 85.29 times

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 -5.15% (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 PLN 39.56 MM

in the last five periods

MOJO Watch

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

Depreciation (PLN MM)

Here's what is not working for VRG SA

Interest

At PLN 6.56 MM has Grown at 10.08%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Interest

Highest at PLN 6.56 MM

in the last five periods and Increased by 10.08% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Debt-Equity Ratio

Highest at 41.59 %

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

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