Beijing OriginWater Technology Co., Ltd. (300070) 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

Beijing OriginWater Technology Co., Ltd.

Why is Beijing OriginWater Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.43%

The company has been able to generate a Return on Capital Employed (avg) of 2.43% signifying low profitability per unit of total capital (equity and debt)

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 -7.73% and Operating profit at -25.78% 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 3.01% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -7.73% and Operating profit at -25.78% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY -358.73 MM
ROCE(HY) Lowest at 0.1%
INTEREST(Q) At CNY 255.55 MM has Grown at 180.35%

With ROE of 0.47%, it has a attractive valuation with a 0.52 Price to Book Value

Over the past year, while the stock has generated a return of -29.72%, its profits have fallen by -83.5%
At the current price, the company has a high dividend yield of 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Beijing OriginWater Technology 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 Beijing OriginWater Technology Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Beijing OriginWater Technology Co., Ltd.

-31.11%

-0.09

27.04%

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)

-7.73%

EBIT Growth (5y)

-25.78%

EBIT to Interest (avg)

0.98

Debt to EBITDA (avg)

12.33

Net Debt to Equity (avg)

0.86

Sales to Capital Employed (avg)

0.16

Tax Ratio

20.31%

Dividend Payout Ratio

24.69%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

2.43%

ROE (avg)

3.01%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

112

Industry P/E

Price to Book Value

0.52

EV to EBIT

74.45

EV to EBITDA

29.79

EV to Capital Employed

0.76

EV to Sales

5.05

PEG Ratio

Dividend Yield

0.10%

ROCE (Latest)

1.02%

ROE (Latest)

0.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-26What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -358.73 MM

ROCE(HY)

Lowest at 0.1%

INTEREST(Q)

At CNY 255.55 MM has Grown at 180.35%

INTEREST COVERAGE RATIO(Q)

Lowest at 61.94

RAW MATERIAL COST(Y)

Grown by 15.59% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.47%

NET SALES(Q)

Fallen at -12.87%

OPERATING PROFIT(Q)

Lowest at CNY 158.3 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.07 %

PRE-TAX PROFIT(Q)

Fallen at -35.46%

NET PROFIT(Q)

Fallen at -34.29%

Here's what is not working for Beijing OriginWater Technology Co., Ltd.

Operating Cash Flow

Lowest at CNY -358.73 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

At CNY 255.55 MM has Grown at 180.35%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 61.94

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Fallen at -12.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 158.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -35.46%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -34.29%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 0.47%

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 15.59% (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