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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Central Plains Environment Protection Co., Ltd.

Why is Central Plains Environment Protection Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 6.18%

Poor long term growth as Net Sales has grown by an annual rate of 13.59% and Operating profit at 19.00% over the last 5 years
The company is Net-Debt Free

Flat results in Mar 26

DEBTORS TURNOVER RATIO(HY) Lowest at 0.54 times
DEBT-EQUITY RATIO (HY) Highest at 291.89 %

With ROE of 11.51%, it has a very attractive valuation with a 0.81 Price to Book Value

Over the past year, while the stock has generated a return of -6.63%, its profits have risen by 11.4% ; the PEG ratio of the company is 0.6
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -6.63% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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.

-5.52%

-0.57

21.76%

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)

13.59%

EBIT Growth (5y)

19.00%

EBIT to Interest (avg)

2.75

Debt to EBITDA (avg)

8.36

Net Debt to Equity (avg)

2.74

Sales to Capital Employed (avg)

0.19

Tax Ratio

4.39%

Dividend Payout Ratio

24.48%

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

0.81

EV to EBIT

19.50

EV to EBITDA

16.11

EV to Capital Employed

0.95

EV to Sales

6.24

PEG Ratio

0.62

Dividend Yield

ROCE (Latest)

4.87%

ROE (Latest)

11.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 513.17 MM

RAW MATERIAL COST(Y)

Fallen by -4.12% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 111.43 times

-3What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.54 times

DEBT-EQUITY RATIO (HY)

Highest at 291.89 %

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

Operating Cash Flow

Highest at CNY 513.17 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)

Inventory Turnover Ratio

Highest at 111.43 times

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 -4.12% (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.

Debtors Turnover Ratio

Lowest at 0.54 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

Debt-Equity Ratio

Highest at 291.89 %

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