Beijing Shougang Co., Ltd. (000959) 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

Beijing Shougang Co., Ltd.

Why is Beijing Shougang Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.01% and Operating profit at -22.10% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 6.97% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.01% and Operating profit at -22.10% over the last 5 years

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 154.26
RAW MATERIAL COST(Y) Grown by 12.08% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 7.93 times

With ROE of 1.74%, it has a expensive valuation with a 0.50 Price to Book Value

Over the past year, while the stock has generated a return of -3.92%, its profits have fallen by -8.7%
At the current price, the company has a high dividend yield of 0.7

Below par performance in long term as well as near term

Along with generating -3.92% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Ferrous Metals)

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

Is Beijing Shougang Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Beijing Shougang Co., Ltd.

-3.92%

0.20

36.92%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.01%

EBIT Growth (5y)

-22.10%

EBIT to Interest (avg)

2.21

Debt to EBITDA (avg)

4.03

Net Debt to Equity (avg)

0.69

Sales to Capital Employed (avg)

1.17

Tax Ratio

13.93%

Dividend Payout Ratio

31.15%

Pledged Shares

Institutional Holding

ROCE (avg)

4.89%

ROE (avg)

6.97%

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

0.50

EV to EBIT

38.53

EV to EBITDA

7.24

EV to Capital Employed

0.69

EV to Sales

0.54

PEG Ratio

Dividend Yield

0.68%

ROCE (Latest)

1.78%

ROE (Latest)

1.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 18,773.75 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 9.34 times

-12What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 154.26

RAW MATERIAL COST(Y)

Grown by 12.08% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.93 times

OPERATING PROFIT(Q)

Lowest at CNY 277.86 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.11 %

PRE-TAX PROFIT(Q)

At CNY 221.07 MM has Fallen at -29.86%

NET PROFIT(Q)

At CNY 174.07 MM has Fallen at -30.1%

Here's what is working for Beijing Shougang Co., Ltd.

Cash and Eqv

Highest at CNY 18,773.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 9.34 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

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

Interest Coverage Ratio

Lowest at 154.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 277.86 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.11 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 221.07 MM has Fallen at -29.86%

over average net sales of the previous four periods of CNY 315.19 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 174.07 MM has Fallen at -30.1%

over average net sales of the previous four periods of CNY 249.03 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 7.93 times

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 12.08% (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