Allied Machinery Co., Ltd. () 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

Allied Machinery Co., Ltd.

Why is Allied Machinery Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.20% and Operating profit at 6.62% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At CNY 3.38 MM has Grown at 18.6%
OPERATING PROFIT MARGIN(Q) Lowest at 22.58 %

With ROE of 8.19%, it has a fair valuation with a 2.85 Price to Book Value

Over the past year, while the stock has generated a return of 177.51%, its profits have fallen by -5.8%

Market Beating performance in long term as well as near term

Along with generating 177.51% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Allied Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Allied Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Allied Machinery Co., Ltd.

183.95%

4.80

61.18%

China Shanghai Composite

20.36%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.20%

EBIT Growth (5y)

6.62%

EBIT to Interest (avg)

89.80

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.46

Tax Ratio

8.60%

Dividend Payout Ratio

36.72%

Pledged Shares

Institutional Holding

ROCE (avg)

17.67%

ROE (avg)

9.60%

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

5.56

EV to EBIT

55.68

EV to EBITDA

41.66

EV to Capital Employed

7.21

EV to Sales

10.91

PEG Ratio

4.30

Dividend Yield

ROCE (Latest)

12.95%

ROE (Latest)

9.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 359.35 MM

NET SALES(HY)

At CNY 660.69 MM has Grown at 27.67%

INTEREST COVERAGE RATIO(Q)

Highest at 8,486.83

RAW MATERIAL COST(Y)

Fallen by -7.83% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.77 times

-8What is not working for the Company

INTEREST(HY)

At CNY 2.41 MM has Grown at 48.98%

OPERATING PROFIT(Q)

Lowest at CNY 74.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 22.04 %

Here's what is working for Allied Machinery Co., Ltd.

Operating Cash Flow

Highest at CNY 359.35 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Highest at 8,486.83

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

At CNY 660.69 MM has Grown at 27.67%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 3.77 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -7.83% (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 Allied Machinery Co., Ltd.

Interest

At CNY 2.41 MM has Grown at 48.98%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 74.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 22.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales