Zaklady Magnezytowe ROPCZYCE SA (RPC) 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

Selena FM SA

Zaklady Magnezytowe ROPCZYCE SA

Megaron SA

Libet SA

Why is Zaklady Magnezytowe ROPCZYCE SA ?

Poor Management Efficiency with a low ROCE of 8.61%

The company has been able to generate a Return on Capital Employed (avg) of 8.61% 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 1.99 times

Poor long term growth as Net Sales has grown by an annual rate of 6.89% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.99 times
The company has been able to generate a Return on Equity (avg) of 6.94% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.89% over the last 5 years

Flat results in Jun 26

OPERATING CASH FLOW(Y) Lowest at PLN 7.37 MM
OPERATING PROFIT(Q) Lowest at PLN 7.92 MM
OPERATING PROFIT MARGIN(Q) Lowest at 8.25 %

With ROE of 4.50%, it has a fair valuation with a 0.38 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 -4.51%, its profits have risen by 128.3% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zaklady Magnezytowe ROPCZYCE SA should be less than 10%
Overall Portfolio exposure to Chemicals & Petrochemicals should be less than 30%

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

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

Is Zaklady Magnezytowe ROPCZYCE SA for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zaklady Magnezytowe ROPCZYCE SA

-4.51%

-0.56

27.94%

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)

6.89%

EBIT Growth (5y)

-6.73%

EBIT to Interest (avg)

8.58

Debt to EBITDA (avg)

4.40

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.83

Tax Ratio

19.07%

Dividend Payout Ratio

75.99%

Pledged Shares

Institutional Holding

ROCE (avg)

7.73%

ROE (avg)

6.94%

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

0.38

EV to EBIT

7.83

EV to EBITDA

4.64

EV to Capital Employed

0.43

EV to Sales

0.47

PEG Ratio

0.07

Dividend Yield

8.80%

ROCE (Latest)

5.52%

ROE (Latest)

4.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly 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

12What is working for the Company

NET PROFIT(HY)

Higher at PLN 12.57 MM

ROCE(HY)

Highest at 4.57%

RAW MATERIAL COST(Y)

Fallen by -1.1% (YoY

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at PLN 7.37 MM

OPERATING PROFIT(Q)

Lowest at PLN 7.92 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.25 %

PRE-TAX PROFIT(Q)

At PLN 3.08 MM has Fallen at -46.29%

NET PROFIT(Q)

At PLN 2.23 MM has Fallen at -51.98%

Here's what is working for Zaklady Magnezytowe ROPCZYCE SA

Raw Material Cost

Fallen by -1.1% (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 Zaklady Magnezytowe ROPCZYCE SA

Operating Cash Flow

Lowest at PLN 7.37 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PLN MM)

Operating Profit

Lowest at PLN 7.92 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (PLN MM)

Operating Profit Margin

Lowest at 8.25 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At PLN 3.08 MM has Fallen at -46.29%

over average net sales of the previous four periods of PLN 5.74 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (PLN MM)

Net Profit

At PLN 2.23 MM has Fallen at -51.98%

over average net sales of the previous four periods of PLN 4.65 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (PLN MM)