China Railway Group 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

China Communications Services Corp. Ltd.

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Canvest Environmental Protection Group Co. Ltd.

Central New Energy Holding Group Ltd.

China Railway Construction Corp. Ltd.

China Energy Engineering Corp. Ltd.

China Everbright Environment Group Ltd.

China Railway Group Ltd.

China Communications Construction Co. Ltd.

Why is China Railway Group Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

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

Negative results in Dec 24

OPERATING CASH FLOW(Y) Lowest at HKD 40,208.55 MM
ROCE(HY) Lowest at 9.12%
INTEREST COVERAGE RATIO(Q) Lowest at 318.34

With ROE of 10.23%, it has a Very Expensive valuation with a 0.05 Price to Book Value

Over the past year, while the stock has generated a return of -1.53%, its profits have fallen by -18%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.53% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

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 Construction)

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

Is China Railway Group Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Railway Group Ltd.

-2.28%

-0.47

27.84%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.95%

EBIT Growth (5y)

5.15%

EBIT to Interest (avg)

3.13

Debt to EBITDA (avg)

3.36

Net Debt to Equity (avg)

0.92

Sales to Capital Employed (avg)

1.62

Tax Ratio

25.80%

Dividend Payout Ratio

16.56%

Pledged Shares

Institutional Holding

ROCE (avg)

9.93%

ROE (avg)

12.27%

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

0.05

EV to EBIT

6.41

EV to EBITDA

4.78

EV to Capital Employed

0.51

EV to Sales

0.25

PEG Ratio

Dividend Yield

ROCE (Latest)

7.89%

ROE (Latest)

10.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for China Railway Group Ltd.

Operating Profit Margin

Highest at 5.46 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at HKD 308,572.55 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at HKD 9,458.49 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 9,458.49 MM has Grown at 32.23%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for China Railway Group Ltd.

Operating Cash Flow

Lowest at HKD 40,208.55 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 (HKD MM)

Interest Coverage Ratio

Lowest at 318.34

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at HKD 11,459.97 MM

in the last five periods and Increased by 43.01% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Debtors Turnover Ratio

Lowest at 1.85%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at HKD 0.33 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income