Carpenter Tan Holdings Ltd. (837) 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

Carpenter Tan Holdings Ltd.

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Almana Ltd.

Why is Carpenter Tan Holdings Ltd. ?

High Management Efficiency with a high ROE of 16.73%

Company has very low debt and has enough cash to service the debt requirements

Poor long term growth as Net Sales has grown by an annual rate of 13.46% and Operating profit at 23.09% over the last 5 years

Flat results in Dec 25

INTEREST(HY) At HKD 0.41 MM has Grown at 25.65%
ROCE(HY) Lowest at 18.3%
INTEREST COVERAGE RATIO(Q) Lowest at 28,853.46

With ROE of 20.42%, it has a Attractive valuation with a 1.92 Price to Book Value

Over the past year, while the stock has generated a return of 18.67%, its profits have risen by 4.3% ; the PEG ratio of the company is 2.2

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Carpenter Tan Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Carpenter Tan Holdings Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Carpenter Tan Holdings Ltd.

18.67%

1.28

24.64%

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)

13.46%

EBIT Growth (5y)

23.09%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.56

Tax Ratio

19.47%

Dividend Payout Ratio

51.37%

Pledged Shares

Institutional Holding

ROCE (avg)

34.81%

ROE (avg)

16.73%

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

1.92

EV to EBIT

7.28

EV to EBITDA

6.93

EV to Capital Employed

2.09

EV to Sales

3.08

PEG Ratio

2.21

Dividend Yield

ROCE (Latest)

28.70%

ROE (Latest)

20.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 353.08 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 140.43%

RAW MATERIAL COST(Y)

Fallen by -3.15% (YoY

-10What is not working for the Company

INTEREST(HY)

At HKD 0.41 MM has Grown at 25.65%

ROCE(HY)

Lowest at 18.3%

INTEREST COVERAGE RATIO(Q)

Lowest at 28,853.46

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.7 times

PRE-TAX PROFIT(Q)

Lowest at HKD 93.47 MM

NET PROFIT(Q)

Lowest at HKD 69.7 MM

EPS(Q)

Lowest at HKD 0.27

Here's what is working for Carpenter Tan Holdings Ltd.

Operating Cash Flow

Highest at HKD 353.08 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)

Dividend Payout Ratio

Highest at 140.43%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.15% (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

Here's what is not working for Carpenter Tan Holdings Ltd.

Interest Coverage Ratio

Lowest at 28,853.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At HKD 0.41 MM has Grown at 25.65%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Pre-Tax Profit

Lowest at HKD 93.47 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 69.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.27

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Inventory Turnover Ratio

Lowest at 0.7 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio