ScoreWhy is Aeolus Tyre Co. Ltd. ?
1
Poor Management Efficiency with a low ROCE of 5.17%
- The company has been able to generate a Return on Capital Employed (avg) of 5.17% 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 4.57% and Operating profit at 8.65% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 6.26% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 4.57% and Operating profit at 8.65% over the last 5 years
4
Flat results in Jun 26
- RAW MATERIAL COST(Y) Grown by 16.53% (YoY)
5
With ROE of 5.53%, it has a very expensive valuation with a 0.98 Price to Book Value
- Over the past year, while the stock has generated a return of -14.14%, its profits have risen by 10% ; the PEG ratio of the company is 1.8
- At the current price, the company has a high dividend yield of 1.2
6
Below par performance in long term as well as near term
- Along with generating -14.14% 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 ReportHow much should you hold?
- Overall Portfolio exposure to Aeolus Tyre Co. Ltd. should be less than 10%
- Overall Portfolio exposure to Auto Components & Equipments should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Aeolus Tyre Co. Ltd. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Aeolus Tyre Co. Ltd.
-14.73%
-0.23
33.35%
China Shanghai Composite
3.0%
0.22
14.72%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.57%
EBIT Growth (5y)
8.65%
EBIT to Interest (avg)
7.83
Debt to EBITDA (avg)
3.85
Net Debt to Equity (avg)
0.48
Sales to Capital Employed (avg)
1.14
Tax Ratio
13.60%
Dividend Payout Ratio
30.96%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.63%
ROE (avg)
6.26%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
18
Industry P/E
Price to Book Value
0.98
EV to EBIT
12.10
EV to EBITDA
7.86
EV to Capital Employed
0.98
EV to Sales
0.68
PEG Ratio
1.77
Dividend Yield
1.23%
ROCE (Latest)
8.12%
ROE (Latest)
5.53%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 568.9 MM
CASH AND EQV(HY)
Highest at CNY 3,636.97 MM
DEBT-EQUITY RATIO
(HY)
Lowest at 18.18 %
INVENTORY TURNOVER RATIO(HY)
Highest at 5.07 times
-1What is not working for the Company
RAW MATERIAL COST(Y)
Grown by 16.53% (YoY
Here's what is working for Aeolus Tyre Co. Ltd.
Operating Cash Flow
Highest at CNY 568.9 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Cash and Eqv
Highest at CNY 3,636.97 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at 18.18 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 5.07 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Here's what is not working for Aeolus Tyre Co. Ltd.
Raw Material Cost
Grown by 16.53% (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
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