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

Sanwil Holding SA

VRG SA

Wojas SA

ESOTIQ & Henderson SA

Protektor 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

ROCE(HY) Lowest at 8.25%
DEBT-EQUITY RATIO (HY) Highest at 44.98 %
INTEREST(Q) At PLN 5.96 MM has Grown at 11.84%

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 30.21%, 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 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, High Return

Absolute

Risk Adjusted

Volatility

VRG SA

29.93%

2.33

26.21%

Poland WIG

37.09%

2.22

16.70%

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at PLN 257.98 MM

RAW MATERIAL COST(Y)

Fallen by -4.19% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 74.2 times

-15What is not working for the Company

ROCE(HY)

Lowest at 8.25%

DEBT-EQUITY RATIO (HY)

Highest at 44.98 %

INTEREST(Q)

At PLN 5.96 MM has Grown at 11.84%

PRE-TAX PROFIT(Q)

Lowest at PLN 1.56 MM

NET PROFIT(Q)

Lowest at PLN -0.13 MM

EPS(Q)

Lowest at PLN -0

Here's what is working for VRG SA

Operating Cash Flow

Highest at PLN 257.98 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (PLN MM)

Debtors Turnover Ratio

Highest at 74.2 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 -4.19% (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 38.51 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

Pre-Tax Profit

At PLN 1.56 MM has Fallen at -94.86%

over average net sales of the previous four periods of PLN 30.44 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (PLN MM)

Net Profit

At PLN -0.13 MM has Fallen at -100.53%

over average net sales of the previous four periods of PLN 24.29 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (PLN MM)

Interest

At PLN 5.96 MM has Grown at 11.84%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PLN MM)

Debt-Equity Ratio

Highest at 44.98 % and Grown

In each half year 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

Pre-Tax Profit

Lowest at PLN 1.56 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PLN MM)

Net Profit

Lowest at PLN -0.13 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PLN MM)

EPS

Lowest at PLN -0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (PLN)