Baowu Magnesium Technology Co., Ltd. (002182) 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

Baowu Magnesium Technology Co., Ltd.

Why is Baowu Magnesium Technology 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 10.30% and Operating profit at -12.23% 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 10.01% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.30% and Operating profit at -12.23% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY 86.26 MM
ROCE(HY) Lowest at 2.38%
INTEREST COVERAGE RATIO(Q) Lowest at 235.06

With ROE of 2.08%, it has a very expensive valuation with a 2.24 Price to Book Value

Over the past year, while the stock has generated a return of 30.12%, its profits have fallen by -66.8%
At the current price, the company has a high dividend yield of 0.3

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 Minerals & Mining)

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

Is Baowu Magnesium Technology Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Baowu Magnesium Technology Co., Ltd.

24.82%

0.25

42.21%

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)

10.30%

EBIT Growth (5y)

-12.23%

EBIT to Interest (avg)

5.40

Debt to EBITDA (avg)

5.39

Net Debt to Equity (avg)

1.07

Sales to Capital Employed (avg)

0.85

Tax Ratio

15.84%

Dividend Payout Ratio

31.06%

Pledged Shares

Institutional Holding

ROCE (avg)

6.96%

ROE (avg)

10.01%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

108

Industry P/E

Price to Book Value

2.24

EV to EBIT

93.08

EV to EBITDA

26.58

EV to Capital Employed

1.60

EV to Sales

1.93

PEG Ratio

Dividend Yield

0.27%

ROCE (Latest)

1.72%

ROE (Latest)

2.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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 4.01%

-22What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 86.26 MM

ROCE(HY)

Lowest at 2.38%

INTEREST COVERAGE RATIO(Q)

Lowest at 235.06

RAW MATERIAL COST(Y)

Grown by 14.89% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 107 %

NET SALES(Q)

At CNY 2,021.8 MM has Fallen at -9.52%

OPERATING PROFIT(Q)

Lowest at CNY 58.79 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.91 %

PRE-TAX PROFIT(Q)

At CNY 32.28 MM has Fallen at -35.07%

NET PROFIT(Q)

At CNY 28.18 MM has Fallen at -29.36%

Here's what is working for Baowu Magnesium Technology Co., Ltd.

Debtors Turnover Ratio

Highest at 4.01%

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 Baowu Magnesium Technology Co., Ltd.

Operating Cash Flow

Lowest at CNY 86.26 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 235.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 2,021.8 MM has Fallen at -9.52%

over average net sales of the previous four periods of CNY 2,234.58 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 58.79 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.91 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 32.28 MM has Fallen at -35.07%

over average net sales of the previous four periods of CNY 49.71 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 28.18 MM has Fallen at -29.36%

over average net sales of the previous four periods of CNY 39.9 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 107 %

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 14.89% (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