Changchun FAWAY Automobile Components Co., Ltd. (600742) 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 FAWAY Automobile Components Co., Ltd.

Why is Changchun FAWAY Automobile Components Co., Ltd. ?

With ROE of 9.34%, it has a very attractive valuation with a 0.88 Price to Book Value

Over the past year, while the stock has generated a return of 18.12%, its profits have risen by 3.3% ; the PEG ratio of the company is 2.9
At the current price, the company has a high dividend yield of 3.3

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Changchun FAWAY Automobile Components Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Changchun FAWAY Automobile Components Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Changchun FAWAY Automobile Components Co., Ltd.

4.15%

1.27

26.92%

China Shanghai Composite

13.33%

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)

-1.88%

EBIT Growth (5y)

3.17%

EBIT to Interest (avg)

42.78

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.63

Sales to Capital Employed (avg)

1.71

Tax Ratio

33.59%

Dividend Payout Ratio

51.12%

Pledged Shares

Institutional Holding

ROCE (avg)

16.23%

ROE (avg)

12.15%

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

0.88

EV to EBIT

3.76

EV to EBITDA

1.56

EV to Capital Employed

0.68

EV to Sales

0.11

PEG Ratio

2.91

Dividend Yield

3.25%

ROCE (Latest)

18.15%

ROE (Latest)

9.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

6What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -61.82 %

DIVIDEND PAYOUT RATIO(Y)

Highest at 81.78%

RAW MATERIAL COST(Y)

Fallen by -10.2% (YoY

CASH AND EQV(HY)

Highest at CNY 18,865.3 MM

DIVIDEND PER SHARE(HY)

Highest at CNY 3.43

-6What is not working for the Company

ROCE(HY)

Lowest at 5.84%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,354.19

OPERATING PROFIT(Q)

Lowest at CNY 192.5 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.87 %

Here's what is working for Changchun FAWAY Automobile Components Co., Ltd.

Debt-Equity Ratio

Lowest at -61.82 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at CNY 18,865.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at CNY 3.43

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 81.78%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -10.2% (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 FAWAY Automobile Components Co., Ltd.

Interest Coverage Ratio

Lowest at 2,354.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 192.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.87 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales