China Resource & Environment Co., Ltd. (600217) 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 Resource & Environment Co., Ltd.

Why is China Resource & Environment 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 2.38% and Operating profit at -195.96% 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 6.90% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.38% and Operating profit at -195.96% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET SALES(HY) At CNY 1,694.1 MM has Grown at -28.93%
NET PROFIT(HY) At CNY -370.93 MM has Grown at -721.09%
ROCE(HY) Lowest at -12.61%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -26.86%, its profits have fallen by -336%
At the current price, the company has a high dividend yield of 0.2

Below par performance in long term as well as near term

Along with generating -26.86% 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 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 Miscellaneous)

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

Is China Resource & Environment Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Resource & Environment Co., Ltd.

-26.29%

-0.07

24.27%

China Shanghai Composite

13.33%

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)

2.38%

EBIT Growth (5y)

-195.96%

EBIT to Interest (avg)

1.56

Debt to EBITDA (avg)

16.33

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

0.54

Tax Ratio

73.13%

Dividend Payout Ratio

203.95%

Pledged Shares

Institutional Holding

ROCE (avg)

4.47%

ROE (avg)

6.90%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.25

EV to EBIT

-17.04

EV to EBITDA

-20.57

EV to Capital Employed

1.68

EV to Sales

2.68

PEG Ratio

Dividend Yield

0.20%

ROCE (Latest)

-9.86%

ROE (Latest)

-16.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly 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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,632.08 MM

DEBT-EQUITY RATIO (HY)

Lowest at 65.83 %

RAW MATERIAL COST(Y)

Fallen by -171.55% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 27.03 times

NET SALES(Q)

At CNY 1,068.18 MM has Grown at 19.32%

PRE-TAX PROFIT(Q)

At CNY -7.77 MM has Grown at 94.14%

NET PROFIT(Q)

At CNY -7.92 MM has Grown at 93.73%

-17What is not working for the Company

NET SALES(HY)

At CNY 1,694.1 MM has Grown at -28.93%

NET PROFIT(HY)

At CNY -370.93 MM has Grown at -721.09%

ROCE(HY)

Lowest at -12.61%

Here's what is working for China Resource & Environment Co., Ltd.

Operating Cash Flow

Highest at CNY 1,632.08 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 65.83 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

At CNY 1,068.18 MM has Grown at 19.32%

over average net sales of the previous four periods of CNY 895.21 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -7.77 MM has Grown at 94.14%

over average net sales of the previous four periods of CNY -132.46 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -7.92 MM has Grown at 93.73%

over average net sales of the previous four periods of CNY -126.2 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 27.03 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 -171.55% (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