Waves Corp. Ltd. (WAVES) 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

Ghani Value Glass Ltd.

Pak Elektron Ltd.

Waves Corp. Ltd.

Why is Waves Corp. Ltd. ?

Poor Management Efficiency with a low ROCE of 2.57%

The company has been able to generate a Return on Capital Employed (avg) of 2.57% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at 0 times

Poor long term growth as Net Sales has grown by an annual rate of -14.77% and Operating profit at -22.65% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at 0 times
The company has been able to generate a Return on Equity (avg) of 4.91% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -14.77% and Operating profit at -22.65% over the last 5 years

Flat results in Mar 25

INTEREST(HY) At PKR 678.34 MM has Grown at 458.78%
OPERATING CASH FLOW(Y) Lowest at PKR -612.93 MM
CASH AND EQV(HY) Lowest at PKR 105.97 MM

With ROE of 12.2, it has a attractive valuation with a 0.2 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 0%, its profits have risen by 333.6% ; the PEG ratio of the company is 0

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 Electronics & Appliances)

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

Is Waves Corp. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Waves Corp. Ltd.

-2.22%

0.06

44.54%

Pakistan KSE 100 Share

60.28%

2.81

22.77%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-13.00%

EBIT Growth (5y)

-18.48%

EBIT to Interest (avg)

0.77

Debt to EBITDA (avg)

8.46

Net Debt to Equity (avg)

0.70

Sales to Capital Employed (avg)

0.29

Tax Ratio

2.21%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.57%

ROE (avg)

4.91%

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

0.34

EV to EBIT

41.93

EV to EBITDA

18.52

EV to Capital Employed

0.61

EV to Sales

2.40

PEG Ratio

0.01

Dividend Yield

ROCE (Latest)

1.46%

ROE (Latest)

13.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

14What is working for the Company

NET PROFIT(HY)

Higher at PKR 901.07 MM

ROCE(HY)

Highest at 11.78%

RAW MATERIAL COST(Y)

Fallen by -11.45% (YoY

-16What is not working for the Company

INTEREST(HY)

At PKR 678.34 MM has Grown at 458.78%

OPERATING CASH FLOW(Y)

Lowest at PKR -612.93 MM

CASH AND EQV(HY)

Lowest at PKR 105.97 MM

DEBT-EQUITY RATIO (HY)

Highest at 70.51 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.81%

PRE-TAX PROFIT(Q)

At PKR 166.01 MM has Fallen at -39.04%

NET PROFIT(Q)

At PKR 108.64 MM has Fallen at -58.47%

Here's what is working for Waves Corp. Ltd.

Raw Material Cost

Fallen by -11.45% (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 Waves Corp. Ltd.

Interest

At PKR 678.34 MM has Grown at 458.78%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (PKR MM)

Operating Cash Flow

Lowest at PKR -612.93 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Pre-Tax Profit

At PKR 166.01 MM has Fallen at -39.04%

over average net sales of the previous four periods of PKR 272.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PKR MM)

Net Profit

At PKR 108.64 MM has Fallen at -58.47%

over average net sales of the previous four periods of PKR 261.6 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PKR MM)

Cash and Eqv

Lowest at PKR 105.97 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 70.51 %

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

Debtors Turnover Ratio

Lowest at 0.81%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio