China Merchants Energy Shipping 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 Merchants Energy Shipping Co., Ltd.

Why is China Merchants Energy Shipping Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 6.38% and Operating profit at 1.24% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 12.71% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.38% and Operating profit at 1.24% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at CNY 8,143.63 MM
INTEREST COVERAGE RATIO(Q) Lowest at 491.73
DEBT-EQUITY RATIO (HY) Highest at 57.73 %

With ROE of 11.91%, it has a very attractive valuation with a 1.70 Price to Book Value

Over the past year, while the stock has generated a return of 214.90%, its profits have risen by 3.3% ; the PEG ratio of the company is 4.3
At the current price, the company has a high dividend yield of 1.8

Market Beating performance in long term as well as near term

Along with generating 214.90% returns in the last 1 year, the stock has outperformed 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 Merchants Energy Shipping Co., Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)

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

Is China Merchants Energy Shipping Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

China Merchants Energy Shipping Co., Ltd.

166.36%

2.23

49.92%

China Shanghai Composite

15.45%

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)

6.38%

EBIT Growth (5y)

1.24%

EBIT to Interest (avg)

5.14

Debt to EBITDA (avg)

2.49

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

0.43

Tax Ratio

17.08%

Dividend Payout Ratio

40.72%

Pledged Shares

Institutional Holding

ROCE (avg)

9.25%

ROE (avg)

12.71%

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

1.70

EV to EBIT

16.10

EV to EBITDA

9.91

EV to Capital Employed

1.46

EV to Sales

3.61

PEG Ratio

4.33

Dividend Yield

1.84%

ROCE (Latest)

9.06%

ROE (Latest)

11.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

Bullish

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 8,143.63 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 491.73

DEBT-EQUITY RATIO (HY)

Highest at 57.73 %

OPERATING PROFIT(Q)

Lowest at CNY 1,284.43 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.1 %

Here's what is not working for China Merchants Energy Shipping Co., Ltd.

Operating Cash Flow

Lowest at CNY 8,143.63 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 491.73

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 1,284.43 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 19.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 57.73 %

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