Capital Environment Holdings Ltd. (3989) 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 Enterprises Urban Resources Group Ltd.

Hongcheng Environmental Technology Co., Ltd.

TIL Enviro Ltd.

Kangda International Environmental Co., Ltd.

Capital Environment Holdings Ltd.

Dongjiang Environmental Co. Ltd.

Weigang Environmental Technology Holding Group Ltd.

New Universe Environmental Group Ltd.

ELL Environmental Holdings Ltd.

Futian Holdings Ltd.

Man Shing Global Holdings Ltd.

Why is Capital Environment Holdings Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -10.64% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Jun 25

INVENTORY TURNOVER RATIO(HY) Lowest at 26.98 times
DEBTORS TURNOVER RATIO(HY) Lowest at 0.95 times

With ROE of 5.15%, it has a Very Expensive valuation with a 0.17 Price to Book Value

Over the past year, while the stock has generated a return of 26.58%, its profits have fallen by -16%

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 Miscellaneous)

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

Is Capital Environment Holdings Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Capital Environment Holdings Ltd.

26.58%

0.28

48.33%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-10.64%

EBIT Growth (5y)

-4.18%

EBIT to Interest (avg)

2.03

Debt to EBITDA (avg)

6.37

Net Debt to Equity (avg)

1.25

Sales to Capital Employed (avg)

0.28

Tax Ratio

20.43%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.94%

ROE (avg)

6.27%

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

0.17

EV to EBIT

14.68

EV to EBITDA

11.10

EV to Capital Employed

0.67

EV to Sales

3.13

PEG Ratio

Dividend Yield

ROCE (Latest)

4.56%

ROE (Latest)

5.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD -203.14 MM

INTEREST COVERAGE RATIO(Q)

Highest at 296.45

RAW MATERIAL COST(Y)

Fallen by -10.49% (YoY

PRE-TAX PROFIT(Q)

Highest at HKD 312.56 MM

EPS(Q)

Highest at HKD 0.01

-4What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 26.98 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.95 times

Here's what is working for Capital Environment Holdings Ltd.

Interest Coverage Ratio

Highest at 296.45

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at HKD -203.14 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Pre-Tax Profit

Highest at HKD 312.56 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

EPS

Highest at HKD 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Raw Material Cost

Fallen by -10.49% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

At HKD 148.45 MM has Grown at 13.5%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Capital Environment Holdings Ltd.

Inventory Turnover Ratio

Lowest at 26.98 times and Fallen

In each half year 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 0.95 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio