Zephyr Textiles Ltd. (ZTL) 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

Zephyr Textiles Ltd.

Why is Zephyr Textiles Ltd. ?

Poor Management Efficiency with a low ROCE of 6,075.72%

The company has been able to generate a Return on Capital Employed (avg) of 6,075.72% 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 Operating profit has grown by an annual rate -155.00% of 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 Capital Employed (avg) of 6,075.72% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Operating profit has grown by an annual rate -155.00% of over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At PKR -0.7 MM has Grown at -100.26%
OPERATING CASH FLOW(Y) Lowest at PKR -200.37 MM
ROCE(HY) Lowest at -8.46%

Risky - Market Cap of less than 100 cr

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 0%, its profits have fallen by -146.5%

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 Garments & Apparels)

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

Is Zephyr Textiles Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zephyr Textiles Ltd.

13.24%

0.30

45.43%

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)

10.55%

EBIT Growth (5y)

-1.31%

EBIT to Interest (avg)

2.46

Debt to EBITDA (avg)

3.34

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

1.99

Tax Ratio

19.11%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6,075.72%

ROE (avg)

3,071.29%

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

EV to EBIT

9.81

EV to EBITDA

4.60

EV to Capital Employed

0.44

EV to Sales

0.24

PEG Ratio

Dividend Yield

ROCE (Latest)

4.48%

ROE (Latest)

0.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for Zephyr Textiles Ltd.

Operating Profit

Highest at PKR 116.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (PKR MM)

Operating Profit Margin

Highest at 6.62 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

At PKR 34.68 MM has Grown at 172.67%

over average net sales of the previous four periods of PKR -47.72 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (PKR MM)

Depreciation

Highest at PKR 55.89 MM

in the last five periods

MOJO Watch

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

Depreciation (PKR MM)

Here's what is not working for Zephyr Textiles Ltd.

Operating Cash Flow

Lowest at PKR -200.37 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (PKR MM)

Net Sales

At PKR 1,760.54 MM has Fallen at -14.54%

over average net sales of the previous four periods of PKR 2,060.07 MM

MOJO Watch

Near term sales trend is negative

Net Sales (PKR MM)

Debt-Equity Ratio

Highest at 71.94 %

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 3.8%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 41.27% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales