Beijing Worldia Diamond Tools Co., Ltd. (688028) 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 Worldia Diamond Tools Co., Ltd.

Why is Beijing Worldia Diamond Tools Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.56%

The company has been able to generate a Return on Capital Employed (avg) of 6.56% signifying low profitability per unit of total capital (equity and debt)

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At CNY 1.81 MM has Grown at 192.48%
INTEREST COVERAGE RATIO(Q) Lowest at 2,385.5
CASH AND EQV(HY) Lowest at CNY 454.71 MM

With ROE of 4.48%, it has a expensive valuation with a 3.32 Price to Book Value

Over the past year, while the stock has generated a return of 198.42%, its profits have fallen by -23.3%
At the current price, the company has a high dividend yield of 0.7

Market Beating performance in long term as well as near term

Along with generating 198.42% 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 hold?

Overall Portfolio exposure to Beijing Worldia Diamond Tools 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 Worldia Diamond Tools Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Beijing Worldia Diamond Tools Co., Ltd.

198.42%

4.08

74.34%

China Shanghai Composite

14.77%

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)

23.95%

EBIT Growth (5y)

11.84%

EBIT to Interest (avg)

47.34

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.07

Sales to Capital Employed (avg)

0.31

Tax Ratio

11.02%

Dividend Payout Ratio

52.08%

Pledged Shares

Institutional Holding

ROCE (avg)

6.56%

ROE (avg)

5.12%

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

3.32

EV to EBIT

83.54

EV to EBITDA

34.04

EV to Capital Employed

3.41

EV to Sales

9.28

PEG Ratio

Dividend Yield

0.73%

ROCE (Latest)

4.08%

ROE (Latest)

4.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 219.14 MM

-20What is not working for the Company

INTEREST(HY)

At CNY 1.81 MM has Grown at 192.48%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,385.5

CASH AND EQV(HY)

Lowest at CNY 454.71 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.31%

OPERATING PROFIT(Q)

Lowest at CNY 17.34 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 11.34 %

NET PROFIT(Q)

Lowest at CNY 21.1 MM

EPS(Q)

Lowest at CNY 0.14

Here's what is working for Beijing Worldia Diamond Tools Co., Ltd.

Operating Cash Flow

Highest at CNY 219.14 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)

Here's what is not working for Beijing Worldia Diamond Tools Co., Ltd.

Interest

At CNY 1.81 MM has Grown at 192.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,385.5 and Fallen

In each period 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 17.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 11.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 21.1 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.14

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 454.71 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 1.31%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio