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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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China Energy Engineering Corp. Ltd.

China Everbright Environment Group Ltd.

China Railway Group Ltd.

China Communications Construction Co. Ltd.

Canvest Environmental Protection Group Co. Ltd.

Why is China Railway Group Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

The company is Net-Debt Free

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 37,574.84 MM
ROCE(HY) Lowest at 6.69%
DEBTORS TURNOVER RATIO(HY) Lowest at 1.41 times

With ROE of 8.69%, it has a Very Expensive valuation with a 0.47 Price to Book Value

Over the past year, while the stock has generated a return of -0.28%, its profits have fallen by -19.7%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.28% 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Railway Group Ltd.

-0.28%

-0.68

30.78%

Hang Seng Hong Kong

8.76%

0.45

19.63%

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)

1.55

Tax Ratio

25.80%

Dividend Payout Ratio

19.13%

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

0.47

EV to EBIT

13.08

EV to EBITDA

9.50

EV to Capital Employed

0.77

EV to Sales

0.50

PEG Ratio

Dividend Yield

ROCE (Latest)

5.89%

ROE (Latest)

8.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

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

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 453.45

CASH AND EQV(HY)

Highest at HKD 322,309.96 MM

OPERATING PROFIT(Q)

Highest at HKD 37,723.35 MM

OPERATING PROFIT MARGIN(Q)

Highest at 5.93 %

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 37,574.84 MM

ROCE(HY)

Lowest at 6.69%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.41 times

DIVIDEND PAYOUT RATIO(Y)

Lowest at 18.03%

RAW MATERIAL COST(Y)

Grown by 11.48% (YoY

DIVIDEND PER SHARE(HY)

Lowest at HKD 1.41

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

Interest Coverage Ratio

Highest at 453.45

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at HKD 37,723.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Operating Profit Margin

Highest at 5.93 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at HKD 322,309.96 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at HKD 13,792.92 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 13,792.92 MM has Grown at 69.76%

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.

Debtors Turnover Ratio

Lowest at 1.41 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 Cash Flow

Lowest at HKD 37,574.84 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Dividend per share

Lowest at HKD 1.41

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (HKD)

Dividend Payout Ratio

Lowest at 18.03%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 11.48% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales