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
The company is Net-Debt Free

With ROE of 5.15%, it has a Very Expensive valuation with a 0.24 Price to Book Value

Over the past year, while the stock has generated a return of 24.00%, 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.

24.0%

0.11

49.85%

Hang Seng Hong Kong

8.76%

0.45

19.63%

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)

0.26

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

0.24

EV to EBIT

13.12

EV to EBITDA

9.91

EV to Capital Employed

0.67

EV to Sales

2.79

PEG Ratio

Dividend Yield

ROCE (Latest)

5.08%

ROE (Latest)

5.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bullish

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD -252.11 MM

INTEREST COVERAGE RATIO(Q)

Highest at 316.91

RAW MATERIAL COST(Y)

Fallen by -5.17% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 124.25 %

OPERATING PROFIT(Q)

Highest at HKD 683.34 MM

OPERATING PROFIT MARGIN(Q)

Highest at 34.14 %

PRE-TAX PROFIT(Q)

Highest at HKD 337.65 MM

NET PROFIT(Q)

Highest at HKD 256.11 MM

-5What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 22.22 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.89 times

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

Operating Cash Flow

Highest at HKD -252.11 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 (HKD MM)

Interest Coverage Ratio

Highest at 316.91

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at HKD 683.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Operating Profit Margin

Highest at 34.14 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at HKD 337.65 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Pre-Tax Profit

At HKD 337.65 MM has Grown at 67.45%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 256.11 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Net Profit

At HKD 256.11 MM has Grown at 86.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Debt-Equity Ratio

Lowest at 124.25 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -5.17% (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 158.68 MM has Grown at 6.89%

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 22.22 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 0.89 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