Cheng De Lolo Co., Ltd. (000848) 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

Cheng De Lolo Co., Ltd.

Why is Cheng De Lolo Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.78% and Operating profit at 7.62% over the last 5 years

Negative results in Mar 26

INTEREST(HY) At CNY 10.32 MM has Grown at 767.78%
ROCE(HY) Lowest at 17.98%
DEBT-EQUITY RATIO (HY) Highest at -84.93 %

With ROE of 17.79%, it has a expensive valuation with a 2.25 Price to Book Value

Over the past year, while the stock has generated a return of -13.43%, its profits have risen by 3.9% ; the PEG ratio of the company is 3.2
At the current price, the company has a high dividend yield of 6.4

Below par performance in long term as well as near term

Along with generating -13.43% 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 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 FMCG)

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

Is Cheng De Lolo Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cheng De Lolo Co., Ltd.

-4.48%

-0.27

20.84%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.78%

EBIT Growth (5y)

7.62%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.87

Sales to Capital Employed (avg)

0.86

Tax Ratio

24.66%

Dividend Payout Ratio

77.88%

Pledged Shares

Institutional Holding

0.02%

ROCE (avg)

249.51%

ROE (avg)

20.02%

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

2.01

EV to EBIT

5.14

EV to EBITDA

4.93

EV to Capital Employed

7.75

EV to Sales

1.30

PEG Ratio

2.89

Dividend Yield

7.22%

ROCE (Latest)

150.63%

ROE (Latest)

17.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 864.59 MM

RAW MATERIAL COST(Y)

Fallen by -7.99% (YoY

CASH AND EQV(HY)

Highest at CNY 6,977.31 MM

-16What is not working for the Company

INTEREST(Q)

At CNY 4.71 MM has Grown at 31.73%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,055.45

DEBT-EQUITY RATIO (HY)

Highest at -72.8 %

OPERATING PROFIT MARGIN(Q)

Lowest at 12.4 %

Here's what is working for Cheng De Lolo Co., Ltd.

Operating Cash Flow

Highest at CNY 864.59 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)

Cash and Eqv

Highest at CNY 6,977.31 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -7.99% (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 Cheng De Lolo Co., Ltd.

Interest

At CNY 4.71 MM has Grown at 31.73%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,055.45

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 12.4 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -72.8 %

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

Non Operating Income

Highest at CNY 0.5 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income