Aeolus Tyre Co. Ltd. (600469) 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

Aeolus Tyre Co. Ltd.

Why is Aeolus Tyre Co. Ltd. ?

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 4.93% and Operating profit at 3.13% 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 6.26% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.93% and Operating profit at 3.13% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -15.32 MM
NET PROFIT(Q) At CNY 28.22 MM has Fallen at -59.82%
INTEREST COVERAGE RATIO(Q) Lowest at 489.76

With ROE of 4.51%, it has a very expensive valuation with a 0.97 Price to Book Value

Over the past year, while the stock has generated a return of 1.92%, its profits have fallen by -62.6%
At the current price, the company has a high dividend yield of 3.4

Underperformed the market in the last 1 year

The stock has generated a return of 1.92% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%

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 Auto Components & Equipments)

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

Is Aeolus Tyre Co. Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Aeolus Tyre Co. Ltd.

-100.0%

0.99

26.49%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.93%

EBIT Growth (5y)

3.13%

EBIT to Interest (avg)

5.73

Debt to EBITDA (avg)

4.39

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

1.08

Tax Ratio

14.07%

Dividend Payout Ratio

41.55%

Pledged Shares

Institutional Holding

ROCE (avg)

5.17%

ROE (avg)

6.26%

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

0.97

EV to EBIT

18.81

EV to EBITDA

8.65

EV to Capital Employed

0.98

EV to Sales

0.70

PEG Ratio

Dividend Yield

3.36%

ROCE (Latest)

5.20%

ROE (Latest)

4.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 4.38%

-23What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -15.32 MM

NET PROFIT(Q)

At CNY 28.22 MM has Fallen at -59.82%

INTEREST COVERAGE RATIO(Q)

Lowest at 489.76

PRE-TAX PROFIT(Q)

At CNY 53.8 MM has Fallen at -45.84%

RAW MATERIAL COST(Y)

Grown by 26.66% (YoY

CASH AND EQV(HY)

Lowest at CNY 1,527 MM

DEBT-EQUITY RATIO (HY)

Highest at 49.4 %

OPERATING PROFIT(Q)

Lowest at CNY 35.95 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.22 %

Here's what is working for Aeolus Tyre Co. Ltd.

Debtors Turnover Ratio

Highest at 4.38%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Aeolus Tyre Co. Ltd.

Net Profit

At CNY 28.22 MM has Fallen at -59.82%

over average net sales of the previous four periods of CNY 70.24 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -15.32 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 489.76

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 53.8 MM has Fallen at -45.84%

over average net sales of the previous four periods of CNY 99.34 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Profit

Lowest at CNY 35.95 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.22 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 1,527 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 49.4 %

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

Raw Material Cost

Grown by 26.66% (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