IRICO Group New Energy Faces Evaluation Shift Amid Declining Profitability Metrics
IRICO Group New Energy Co., Ltd. has experienced a recent evaluation adjustment, reflecting changes in its stock quality score. The company reported a five-year sales growth of 6.84%, but a significant decline in EBIT raises concerns about operational efficiency. High leverage and limited returns further contribute to the revised assessment.
IRICO Group New Energy Co., Ltd., operating within the Other Electrical Equipment industry, has recently undergone an adjustment in evaluation. This revision reflects a notable shift in the stock's quality score, which has prompted a change in its classification. The company has reported a five-year sales growth of 6.84%, indicating some level of revenue generation over the period. However, the EBIT growth has shown a significant decline of 295.65%, which raises questions about operational efficiency and profitability. The average EBIT to interest ratio stands at 0.56, suggesting that the company may face challenges in covering its interest obligations.
Additionally, the debt metrics reveal a debt to EBITDA ratio of 39.86 and a net debt to equity ratio of 3.95, indicating a high level of leverage. The sales to capital employed ratio is at 0.52, which may reflect on the effectiveness of capital utilization. The average return on capital employed (ROCE) is recorded at 3.34%, while the return on equity (ROE) is at 4.89%, both of which suggest limited returns relative to the capital invested.
Overall, these metrics contribute to the recent evaluation adjustment for IRICO Group New Energy Co., Ltd.
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