CECEP Solar Energy Co., Ltd. (000591) 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

CECEP Solar Energy Co., Ltd.

Why is CECEP Solar Energy Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 0.45% and Operating profit at -2.88% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.79% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.45% and Operating profit at -2.88% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

NET PROFIT(HY) At CNY 223.45 MM has Grown at -53.43%
ROCE(HY) Lowest at 4.94%
DEBT-EQUITY RATIO (HY) Highest at 91.45 %

With ROE of 4.56%, it has a very expensive valuation with a 0.74 Price to Book Value

Over the past year, while the stock has generated a return of -8.58%, its profits have fallen by -27%
At the current price, the company has a high dividend yield of 2.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -8.58% 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 Solar Energy Co., Ltd. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

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

Is CECEP Solar Energy Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

CECEP Solar Energy Co., Ltd.

-100.0%

-0.13

19.91%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.45%

EBIT Growth (5y)

-2.88%

EBIT to Interest (avg)

2.93

Debt to EBITDA (avg)

5.18

Net Debt to Equity (avg)

0.84

Sales to Capital Employed (avg)

0.19

Tax Ratio

22.15%

Dividend Payout Ratio

36.08%

Pledged Shares

Institutional Holding

ROCE (avg)

5.95%

ROE (avg)

6.79%

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

0.74

EV to EBIT

21.19

EV to EBITDA

11.48

EV to Capital Employed

0.87

EV to Sales

7.36

PEG Ratio

Dividend Yield

2.48%

ROCE (Latest)

4.08%

ROE (Latest)

4.56%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

Bullish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.67% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 11.9%

-23What is not working for the Company

NET PROFIT(HY)

At CNY 223.45 MM has Grown at -53.43%

ROCE(HY)

Lowest at 4.94%

DEBT-EQUITY RATIO (HY)

Highest at 91.45 %

NET SALES(Q)

At CNY 1,274.92 MM has Fallen at -14.1%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.45%

OPERATING PROFIT MARGIN(Q)

Lowest at 37 %

Here's what is working for CECEP Solar Energy Co., Ltd.

Inventory Turnover Ratio

Highest at 11.9%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -1.67% (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 Solar Energy Co., Ltd.

Net Profit

At CNY 223.45 MM has Grown at -53.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,274.92 MM has Fallen at -14.1%

over average net sales of the previous four periods of CNY 1,484.16 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 91.45 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit Margin

Lowest at 37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 0.45%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio