ABA Chemicals Corp. (300261) 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

ABA Chemicals Corp.

Why is ABA Chemicals Corp. ?

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

Poor long term growth as Net Sales has grown by an annual rate of -9.41% and Operating profit at -191.24% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.53% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -9.41% and Operating profit at -191.24% over the last 5 years

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -15.14%, its profits have risen by 44.3%
At the current price, the company has a high dividend yield of 0.7

Below par performance in long term as well as near term

Along with generating -15.14% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Pharmaceuticals & Biotechnology)

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

Is ABA Chemicals Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

ABA Chemicals Corp.

-15.14%

0.20

44.66%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-9.41%

EBIT Growth (5y)

-191.24%

EBIT to Interest (avg)

1.42

Debt to EBITDA (avg)

1.79

Net Debt to Equity (avg)

0.49

Sales to Capital Employed (avg)

0.37

Tax Ratio

14.71%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.88%

ROE (avg)

4.53%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.51

EV to EBIT

-45.47

EV to EBITDA

-234.14

EV to Capital Employed

2.65

EV to Sales

6.42

PEG Ratio

Dividend Yield

0.68%

ROCE (Latest)

-5.82%

ROE (Latest)

-6.70%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by -98.32% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY -8.54 MM

NET PROFIT(Q)

Highest at CNY 2.16 MM

-5What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 51.47 %

INTEREST(Q)

Highest at CNY 9.72 MM

Here's what is working for ABA Chemicals Corp.

Pre-Tax Profit

Highest at CNY -8.54 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY -8.54 MM has Grown at 80.66%

over average net sales of the previous four periods of CNY -44.16 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 2.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY 2.16 MM has Grown at 107.08%

over average net sales of the previous four periods of CNY -30.49 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -98.32% (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 ABA Chemicals Corp.

Interest

Highest at CNY 9.72 MM

in the last five periods and Increased by 6.73% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 51.47 %

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