Central Plains Environment Protection Co., Ltd. (000544) 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

Central Plains Environment Protection Co., Ltd.

Why is Central Plains Environment Protection 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 21.88% and Operating profit at 21.36% 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 9.99% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 4 consecutive quarters

NET SALES(HY) At CNY 2,476.56 MM has Grown at -39.19%
DEBT-EQUITY RATIO (HY) Highest at 277.9 %
CASH AND EQV(HY) Lowest at CNY 2,959.01 MM

With ROE of 11.75%, it has a fair valuation with a 0.92 Price to Book Value

Over the past year, while the stock has generated a return of -4.51%, its profits have risen by 1.3% ; the PEG ratio of the company is 6
At the current price, the company has a high dividend yield of 3.1

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.51% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Central Plains Environment Protection Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Central Plains Environment Protection Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Central Plains Environment Protection Co., Ltd.

-4.57%

0.32

21.33%

China Shanghai Composite

14.77%

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)

21.88%

EBIT Growth (5y)

21.36%

EBIT to Interest (avg)

2.75

Debt to EBITDA (avg)

8.36

Net Debt to Equity (avg)

2.74

Sales to Capital Employed (avg)

0.22

Tax Ratio

4.39%

Dividend Payout Ratio

25.36%

Pledged Shares

Institutional Holding

ROCE (avg)

6.18%

ROE (avg)

9.99%

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

0.92

EV to EBIT

18.19

EV to EBITDA

15.08

EV to Capital Employed

0.98

EV to Sales

6.63

PEG Ratio

5.99

Dividend Yield

3.13%

ROCE (Latest)

5.39%

ROE (Latest)

11.75%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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 -962.71 MM

RAW MATERIAL COST(Y)

Fallen by -24.03% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 50.68 %

-17What is not working for the Company

NET SALES(HY)

At CNY 2,476.56 MM has Grown at -39.19%

DEBT-EQUITY RATIO (HY)

Highest at 277.9 %

CASH AND EQV(HY)

Lowest at CNY 2,959.01 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 44.9%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.72%

Here's what is working for Central Plains Environment Protection Co., Ltd.

Operating Cash Flow

Highest at CNY -962.71 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 (CNY MM)

Operating Profit Margin

Highest at 50.68 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -24.03% (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 Central Plains Environment Protection Co., Ltd.

Net Sales

At CNY 1,133.41 MM has Fallen at -25.88%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 277.9 % 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

Net Sales

Lowest at CNY 1,133.41 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 2,959.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 44.9%

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 0.72%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio