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 buy?

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.

248.39%

2.23

49.92%

China Shanghai Composite

19.22%

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)

8.60%

EBIT Growth (5y)

31.41%

EBIT to Interest (avg)

5.14

Debt to EBITDA (avg)

2.49

Net Debt to Equity (avg)

0.48

Sales to Capital Employed (avg)

0.42

Tax Ratio

17.08%

Dividend Payout Ratio

42.98%

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

2.55

EV to EBIT

16.19

EV to EBITDA

12.03

EV to Capital Employed

2.04

EV to Sales

4.40

PEG Ratio

0.22

Dividend Yield

1.60%

ROCE (Latest)

12.59%

ROE (Latest)

17.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

No Trend

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

34What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,264.95

OPERATING CASH FLOW(Y)

Highest at CNY 11,187.73 MM

ROCE(HY)

Highest at 18.46%

NET SALES(Q)

At CNY 8,556.01 MM has Grown at 52.92%

RAW MATERIAL COST(Y)

Fallen by -75.74% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 3,028.61 MM

NET PROFIT(Q)

Highest at CNY 2,758.77 MM

EPS(Q)

Highest at CNY 0.34

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for China Merchants Energy Shipping Co., Ltd.

Interest Coverage Ratio

Highest at 1,264.95 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At CNY 3,028.61 MM has Grown at 255.68%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 2,758.77 MM has Grown at 218.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 8,556.01 MM has Grown at 52.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 11,187.73 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 3,028.61 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 2,758.77 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.34

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -75.74% (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