China Machinery Huanyu Certification & Inspection 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

China Machinery Huanyu Certification & Inspection Co., Ltd.

Why is China Machinery Huanyu Certification & Inspection Co., Ltd. ?

Flat results in Mar 26

INTEREST(HY) At CNY 3.37 MM has Grown at 110.59%
INTEREST COVERAGE RATIO(Q) Lowest at 2,158.66
OPERATING PROFIT(Q) Lowest at CNY 36.63 MM

With ROE of 7.51%, it has a very attractive valuation with a 0.52 Price to Book Value

Over the past year, while the stock has generated a return of -28.07%, its profits have risen by 13% ; the PEG ratio of the company is 0.5

Below par performance in long term as well as near term

Along with generating -28.07% 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 China Machinery Huanyu Certification & Inspection 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 China Machinery Huanyu Certification & Inspection Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Machinery Huanyu Certification & Inspection Co., Ltd.

-28.07%

-1.60

22.52%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.40%

EBIT Growth (5y)

16.23%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.40

Tax Ratio

18.45%

Dividend Payout Ratio

36.09%

Pledged Shares

Institutional Holding

ROCE (avg)

18.52%

ROE (avg)

9.76%

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

0.52

EV to EBIT

1.70

EV to EBITDA

1.17

EV to Capital Employed

0.23

EV to Sales

0.34

PEG Ratio

0.52

Dividend Yield

ROCE (Latest)

13.55%

ROE (Latest)

7.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bullish

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 -3.77% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 557.45 times

-14What is not working for the Company

INTEREST(HY)

At CNY 3.37 MM has Grown at 110.59%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,158.66

OPERATING PROFIT(Q)

Lowest at CNY 36.63 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.28 %

Here's what is working for China Machinery Huanyu Certification & Inspection Co., Ltd.

Inventory Turnover Ratio

Highest at 557.45 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 -3.77% (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 China Machinery Huanyu Certification & Inspection Co., Ltd.

Interest

At CNY 3.37 MM has Grown at 110.59%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,158.66

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 36.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 19.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales