CECEP Environmental Protection Co., Ltd. (300140) 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

CECEP Environmental Protection Co., Ltd.

Why is CECEP Environmental Protection Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 28.71% and Operating profit at 40.47% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.51% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

DEBTORS TURNOVER RATIO(HY) Lowest at 0.92 times
INVENTORY TURNOVER RATIO(HY) Lowest at 6.56 times

With ROE of 6.61%, it has a attractive valuation with a 0.10 Price to Book Value

Over the past year, while the stock has generated a return of -10.34%, its profits have risen by 34.9% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 3.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.34% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CECEP Environmental Protection 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 CECEP Environmental Protection Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

CECEP Environmental Protection Co., Ltd.

-14.19%

-0.45

36.30%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

28.71%

EBIT Growth (5y)

40.47%

EBIT to Interest (avg)

-1.96

Debt to EBITDA (avg)

3.00

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

0.24

Tax Ratio

24.39%

Dividend Payout Ratio

42.69%

Pledged Shares

Institutional Holding

ROCE (avg)

2.28%

ROE (avg)

2.51%

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

0.10

EV to EBIT

7.66

EV to EBITDA

4.60

EV to Capital Employed

0.44

EV to Sales

1.71

PEG Ratio

0.04

Dividend Yield

3.21%

ROCE (Latest)

5.77%

ROE (Latest)

6.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,230.5 MM

NET PROFIT(9M)

At CNY 643.68 MM has Grown at 39.87%

RAW MATERIAL COST(Y)

Fallen by -6.47% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 397.58 MM

-3What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.92 times

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.56 times

Here's what is working for CECEP Environmental Protection Co., Ltd.

Net Profit

At CNY 643.68 MM has Grown at 39.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 2,230.5 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 397.58 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -6.47% (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 CECEP Environmental Protection Co., Ltd.

Debtors Turnover Ratio

Lowest at 0.92 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

Inventory Turnover Ratio

Lowest at 6.56 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio