Changchun Engley Automobile Industry Co., Ltd () 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

Changchun Engley Automobile Industry Co., Ltd

Why is Changchun Engley Automobile Industry Co., Ltd ?

Poor Management Efficiency with a low ROCE of 3.24%

The company has been able to generate a Return on Capital Employed (avg) of 3.24% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -3.39% and Operating profit at -177.07% over the last 5 years

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

PRE-TAX PROFIT(Q) At CNY -20.67 MM has Fallen at -135.68%
NET PROFIT(Q) At CNY -17.63 MM has Fallen at -206.51%
NET SALES(9M) At CNY 3,154.57 MM has Grown at -8.97%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 16.89%, its profits have fallen by -125.8%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Changchun Engley Automobile Industry Co., Ltd for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Changchun Engley Automobile Industry Co., Ltd

-19.31%

-0.11

51.51%

China Shanghai Composite

16.78%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.08%

EBIT Growth (5y)

-175.02%

EBIT to Interest (avg)

3.17

Debt to EBITDA (avg)

1.44

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

0.78

Tax Ratio

32.54%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.24%

ROE (avg)

3.72%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.25

EV to EBIT

-62.77

EV to EBITDA

20.09

EV to Capital Employed

1.25

EV to Sales

1.23

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.99%

ROE (Latest)

-1.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

NET PROFIT(HY)

Higher at CNY -43.22 MM

RAW MATERIAL COST(Y)

Fallen by -101.89% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 1.13 %

DEBTORS TURNOVER RATIO(HY)

Highest at 4.12 times

-23What is not working for the Company

NET PROFIT(Q)

At CNY -27.36 MM has Fallen at -57.62%

ROCE(HY)

Lowest at -1.78%

INTEREST(Q)

At CNY 6.04 MM has Grown at 23.76%

PRE-TAX PROFIT(Q)

At CNY -27.86 MM has Fallen at -47.46%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.51 times

NET SALES(Q)

Lowest at CNY 879.64 MM

OPERATING PROFIT(Q)

Lowest at CNY -31.74 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.61 %

Here's what is working for Changchun Engley Automobile Industry Co., Ltd

Debt-Equity Ratio

Lowest at 1.13 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 4.12 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -101.89% (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 Changchun Engley Automobile Industry Co., Ltd

Net Sales

At CNY 879.64 MM has Fallen at -18.54%

over average net sales of the previous four periods of CNY 1,079.91 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Profit

At CNY -27.36 MM has Fallen at -57.62%

over average net sales of the previous four periods of CNY -17.36 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 6.04 MM has Grown at 23.76%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -27.86 MM has Fallen at -47.46%

over average net sales of the previous four periods of CNY -18.89 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Sales

Lowest at CNY 879.64 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -31.74 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.51 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio