Chengdu Xingrong Environment Co., Ltd. (000598) 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

Chengdu Xingrong Environment Co., Ltd.

Why is Chengdu Xingrong Environment Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 10.37% and Operating profit at 10.90% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 11.25% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.37% and Operating profit at 10.90% over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at 10.38%
DEBTORS TURNOVER RATIO(HY) Lowest at 2 times
OPERATING PROFIT(Q) Lowest at CNY 693.97 MM

With ROE of 10.27%, it has a very expensive valuation with a 0.99 Price to Book Value

Over the past year, while the stock has generated a return of -7.08%, its profits have fallen by -1.3%
At the current price, the company has a high dividend yield of 2.8

Below par performance in long term as well as near term

Along with generating -7.08% 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 Other Utilities)

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

Is Chengdu Xingrong Environment Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chengdu Xingrong Environment Co., Ltd.

-5.6%

-0.82

18.84%

China Shanghai Composite

21.43%

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)

10.37%

EBIT Growth (5y)

10.90%

EBIT to Interest (avg)

5.81

Debt to EBITDA (avg)

2.40

Net Debt to Equity (avg)

0.63

Sales to Capital Employed (avg)

0.26

Tax Ratio

15.31%

Dividend Payout Ratio

34.96%

Pledged Shares

Institutional Holding

ROCE (avg)

9.46%

ROE (avg)

11.25%

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

0.99

EV to EBIT

11.50

EV to EBITDA

7.81

EV to Capital Employed

0.99

EV to Sales

3.49

PEG Ratio

Dividend Yield

2.77%

ROCE (Latest)

8.64%

ROE (Latest)

10.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -2.52% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 22.86 times

-5What is not working for the Company

ROCE(HY)

Lowest at 10.38%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2 times

OPERATING PROFIT(Q)

Lowest at CNY 693.97 MM

Here's what is working for Chengdu Xingrong Environment Co., Ltd.

Inventory Turnover Ratio

Highest at 22.86 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 -2.52% (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 Chengdu Xingrong Environment Co., Ltd.

Debtors Turnover Ratio

Lowest at 2 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

Operating Profit

Lowest at CNY 693.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)