Baota Industry Co., Ltd. (000595) 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

Baota Industry Co., Ltd.

Why is Baota Industry Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -3.18% and Operating profit at 0.23% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(HY) At CNY -131.82 MM has Grown at -81.86%
INTEREST(HY) At CNY 5.1 MM has Grown at 68%
ROCE(HY) Lowest at -44.79%

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 -42.11%, its profits have risen by 33.7%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -42.11% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Baota Industry 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 Baota Industry Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Baota Industry Co., Ltd.

-42.89%

0.95

54.87%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.18%

EBIT Growth (5y)

0.23%

EBIT to Interest (avg)

-16.27

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

0.36

Tax Ratio

0.10%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

1.78%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

14.12

EV to EBIT

-32.16

EV to EBITDA

-37.55

EV to Capital Employed

10.50

EV to Sales

24.73

PEG Ratio

Dividend Yield

ROCE (Latest)

-32.66%

ROE (Latest)

-18.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -4.7 MM

DEBT-EQUITY RATIO (HY)

Lowest at 8.83 %

-34What is not working for the Company

NET PROFIT(HY)

At CNY -131.82 MM has Grown at -81.86%

INTEREST(HY)

At CNY 5.1 MM has Grown at 68%

ROCE(HY)

Lowest at -44.79%

RAW MATERIAL COST(Y)

Grown by 632.71% (YoY

CASH AND EQV(HY)

Lowest at CNY 176.97 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.2%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.86%

NET SALES(Q)

Lowest at CNY 35.36 MM

Here's what is working for Baota Industry Co., Ltd.

Operating Cash Flow

Highest at CNY -4.7 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)

Debt-Equity Ratio

Lowest at 8.83 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Baota Industry Co., Ltd.

Net Profit

At CNY -131.82 MM has Grown at -81.86%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 5.1 MM has Grown at 68%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 35.36 MM has Fallen at -40%

over average net sales of the previous four periods of CNY 58.94 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 35.36 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 176.97 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 1.2%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0.86%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 632.71% (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