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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sanwil Holding SA

ESOTIQ & Henderson SA

VRG SA

Wojas SA

Protektor SA

Solar Co. SA

Why is VRG SA ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 0.57 times

Poor long term growth as Net Sales has grown by an annual rate of 8.90% and Operating profit at 24.69% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 0.57 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 8.90% and Operating profit at 24.69% over the last 5 years

Flat results in Mar 25

OPERATING CASH FLOW(Y) Lowest at PLN 91.77 MM
INTEREST(HY) At PLN 11.25 MM has Grown at 72.86%
ROCE(HY) Lowest at 8.85%

With ROE of 8.25%, it has a very expensive valuation with a 0.95 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 54.13%, its profits have risen by 7.5% ; the PEG ratio of the company is 1.6

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 Footwear)

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

Is VRG SA for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

VRG SA

53.19%

1.73

26.60%

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)

8.90%

EBIT Growth (5y)

24.69%

EBIT to Interest (avg)

3.28

Debt to EBITDA (avg)

0.57

Net Debt to Equity (avg)

0.22

Sales to Capital Employed (avg)

1.11

Tax Ratio

21.53%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.43%

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

0.95

EV to EBIT

9.06

EV to EBITDA

4.59

EV to Capital Employed

0.96

EV to Sales

0.88

PEG Ratio

1.55

Dividend Yield

ROCE (Latest)

10.62%

ROE (Latest)

8.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

OBV

Mildly 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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.02% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 69.44%

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PLN 91.77 MM

INTEREST(HY)

At PLN 11.25 MM has Grown at 72.86%

ROCE(HY)

Lowest at 8.85%

INTEREST COVERAGE RATIO(Q)

Lowest at 762.28

PRE-TAX PROFIT(Q)

At PLN 8.04 MM has Fallen at -70.67%

NET PROFIT(Q)

At PLN 6.02 MM has Fallen at -72.02%

CASH AND EQV(HY)

Lowest at PLN 30.03 MM

DEBT-EQUITY RATIO (HY)

Highest at 40.75 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.92%

NET SALES(Q)

At PLN 293.64 MM has Fallen at -14.58%

Here's what is working for VRG SA

Debtors Turnover Ratio

Highest at 69.44%

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 -1.02% (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 VRG SA

Interest Coverage Ratio

Lowest at 762.28

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At PLN 8.04 MM has Fallen at -70.67%

over average net sales of the previous four periods of PLN 27.41 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PLN MM)

Net Profit

At PLN 6.02 MM has Fallen at -72.02%

over average net sales of the previous four periods of PLN 21.51 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PLN MM)

Interest

At PLN 11.25 MM has Grown at 72.86%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Operating Cash Flow

Lowest at PLN 91.77 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PLN MM)

Net Sales

At PLN 293.64 MM has Fallen at -14.58%

over average net sales of the previous four periods of PLN 343.76 MM

MOJO Watch

Near term sales trend is negative

Net Sales (PLN MM)

Cash and Eqv

Lowest at PLN 30.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 40.75 %

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

Inventory Turnover Ratio

Lowest at 0.92%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio