China Vocational Education Holdings Ltd. (1756) 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

Pico Far East Holdings Ltd.

Neusoft Education Technology Co. Ltd.

Glorious Sun Enterprises Ltd.

China Vocational Education Holdings Ltd.

Minsheng Education Group Co. Ltd.

Biocytogen Pharmaceuticals (Beijing) Co., Ltd.

Mabpharm Ltd.

Net-a-Go Technology Co., Ltd.

Bradaverse Education (Intl) Investments Group Ltd.

Brii Biosciences Ltd. (China)

Chen Lin Education Group Holdings Ltd.

Why is China Vocational Education Holdings Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate 6.67% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at HKD 1,544.54 MM
INTEREST COVERAGE RATIO(Q) Highest at 967.75
NET SALES(Q) Highest at HKD 778.51 MM

With ROE of 10.93%, it has a Attractive valuation with a 0.17 Price to Book Value

Over the past year, while the stock has generated a return of -6.06%, its profits have risen by 8.6% ; the PEG ratio of the company is 0.2

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -6.06% 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 hold?

Overall Portfolio exposure to China Vocational Education Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is China Vocational Education Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

China Vocational Education Holdings Ltd.

-100.0%

-0.03

51.61%

Hang Seng Hong Kong

18.06%

0.71

25.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.15%

EBIT Growth (5y)

6.67%

EBIT to Interest (avg)

5.20

Debt to EBITDA (avg)

3.14

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

0.19

Tax Ratio

5.97%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

8.22%

ROE (avg)

9.70%

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

0.17

EV to EBIT

4.63

EV to EBITDA

3.09

EV to Capital Employed

0.40

EV to Sales

1.65

PEG Ratio

0.18

Dividend Yield

ROCE (Latest)

8.70%

ROE (Latest)

10.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

No Trend

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 Vocational Education Holdings Ltd.

Operating Cash Flow

Highest at HKD 1,544.54 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 (HKD MM)

Interest Coverage Ratio

Highest at 967.75

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at HKD 778.51 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Operating Profit

Highest at HKD 414.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Pre-Tax Profit

Highest at HKD 266.41 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 251.71 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 0.21

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Depreciation

Highest at HKD 136.95 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 136.95 MM has Grown at 11.68%

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 Vocational Education Holdings Ltd.

Cash and Eqv

Lowest at HKD 431.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 16.28% (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