ScoreWhy is ADAMA Ltd. ?
1
Poor Management Efficiency with a low ROCE of 3.60%
- The company has been able to generate a Return on Capital Employed (avg) of 3.60% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 0.09% and Operating profit at -8.10% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 2.65% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 0.09% and Operating profit at -8.10% over the last 5 years
4
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 -16.99%, its profits have risen by 47.5%
- At the current price, the company has a high dividend yield of 0
5
Below par performance in long term as well as near term
- Along with generating -16.99% 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 ReportHow 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 Specialty Chemicals)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is ADAMA Ltd. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
ADAMA Ltd.
-18.23%
0.24
38.30%
China Shanghai Composite
20.18%
1.55
13.83%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
0.09%
EBIT Growth (5y)
-8.10%
EBIT to Interest (avg)
1.55
Debt to EBITDA (avg)
5.02
Net Debt to Equity (avg)
0.66
Sales to Capital Employed (avg)
0.81
Tax Ratio
36.95%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.60%
ROE (avg)
2.65%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
Price to Book Value
0.70
EV to EBIT
24.62
EV to EBITDA
10.16
EV to Capital Employed
0.83
EV to Sales
0.94
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.38%
ROE (Latest)
-6.67%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend18What is working for the Company
PRE-TAX PROFIT(Q)
At CNY 416.51 MM has Grown at 279.39%
ROCE(HY)
Highest at -3.39%
RAW MATERIAL COST(Y)
Fallen by -20.36% (YoY
NET PROFIT(Q)
Highest at CNY 573.18 MM
EPS(Q)
Highest at CNY 0.24
-13What is not working for the Company
INTEREST(HY)
At CNY 707.28 MM has Grown at 38.23%
OPERATING CASH FLOW(Y)
Lowest at CNY 3,277.98 MM
OPERATING PROFIT(Q)
Lowest at CNY 507.17 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 7.04 %
CASH AND EQV(HY)
Lowest at CNY 6,846.09 MM
DEBT-EQUITY RATIO
(HY)
Highest at 85.95 %
Here's what is working for ADAMA Ltd.
Pre-Tax Profit
At CNY 416.51 MM has Grown at 279.39%
over average net sales of the previous four periods of CNY -232.18 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 573.18 MM has Grown at 281.21%
over average net sales of the previous four periods of CNY -316.3 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (CNY MM)
Net Profit
Highest at CNY 573.18 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.24
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Raw Material Cost
Fallen by -20.36% (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 ADAMA Ltd.
Interest
At CNY 707.28 MM has Grown at 38.23%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Cash Flow
Lowest at CNY 3,277.98 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Operating Profit
Lowest at CNY 507.17 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 7.04 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Cash and Eqv
Lowest at CNY 6,846.09 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 85.95 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
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