Atlantic China Welding Consumables, Inc. (600558) 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

Atlantic China Welding Consumables, Inc.

Why is Atlantic China Welding Consumables, Inc. ?

The company has declared Positive results for the last 8 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 331.18 MM
NET PROFIT(HY) At CNY 109.75 MM has Grown at 83.11%
ROCE(HY) Highest at 7.07%

With ROE of 8.48%, it has a very attractive valuation with a 1.70 Price to Book Value

Over the past year, while the stock has generated a return of 23.23%, its profits have risen by 63.2% ; the PEG ratio of the company is 0.3
At the current price, the company has a high dividend yield of 2.1

Market Beating performance in long term as well as near term

Along with generating 23.23% 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 buy?

Overall Portfolio exposure to Atlantic China Welding Consumables, Inc. 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 Atlantic China Welding Consumables, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Atlantic China Welding Consumables, Inc.

-100.0%

1.21

42.08%

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)

5.19%

EBIT Growth (5y)

27.97%

EBIT to Interest (avg)

14.97

Debt to EBITDA (avg)

0.26

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.41

Tax Ratio

13.96%

Dividend Payout Ratio

57.90%

Pledged Shares

Institutional Holding

ROCE (avg)

5.80%

ROE (avg)

5.76%

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

1.70

EV to EBIT

16.59

EV to EBITDA

11.32

EV to Capital Employed

1.88

EV to Sales

1.04

PEG Ratio

0.32

Dividend Yield

2.14%

ROCE (Latest)

11.33%

ROE (Latest)

8.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 331.18 MM

NET PROFIT(HY)

At CNY 109.75 MM has Grown at 83.11%

ROCE(HY)

Highest at 7.07%

DEBT-EQUITY RATIO (HY)

Lowest at -15.73 %

RAW MATERIAL COST(Y)

Fallen by -30.18% (YoY

CASH AND EQV(HY)

Highest at CNY 954.27 MM

-2What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.51%

OPERATING PROFIT MARGIN(Q)

Lowest at 5.62 %

Here's what is working for Atlantic China Welding Consumables, Inc.

Operating Cash Flow

Highest at CNY 331.18 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)

Net Profit

At CNY 109.75 MM has Grown at 83.11%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -15.73 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Cash and Eqv

Highest at CNY 954.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -30.18% (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 Atlantic China Welding Consumables, Inc.

Operating Profit Margin

Lowest at 5.62 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 4.51%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio