China Water Affairs Group Ltd. (855) 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

Universal Technologies Holdings Ltd.

Guangdong Investment Ltd.

China Water Affairs Group Ltd.

Tianjin Development Holdings Ltd.

Kunming Dianchi Water Treatment Co., Ltd.

Luzhou Xinglu Water (Group) Co., Ltd.

EverChina Int'l Holdings Co. Ltd.

China Water Industry Group Ltd.

Taizhou Water Group Co., Ltd.

Hao Bai International (Cayman) Ltd.

Why is China Water Affairs Group Ltd. ?

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

Poor long term growth as Operating profit has grown by an annual rate -3.49% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate -3.49% of over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at HKD 5,835.46 MM
ROCE(HY) Lowest at 6.53%
DEBTORS TURNOVER RATIO(HY) Lowest at 1.19 times

With ROE of 15.10%, it has a Very Expensive valuation with a 0.77 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -25.04%, its profits have fallen by -23.3%
At the current price, the company has a high dividend yield of 450.9

Below par performance in long term as well as near term

Along with generating -25.04% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong 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 Other Utilities)

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

Is China Water Affairs Group Ltd. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

China Water Affairs Group Ltd.

-100.0%

18.58

29.27%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.82%

EBIT Growth (5y)

-3.49%

EBIT to Interest (avg)

6.42

Debt to EBITDA (avg)

3.65

Net Debt to Equity (avg)

1.50

Sales to Capital Employed (avg)

0.35

Tax Ratio

26.94%

Dividend Payout Ratio

42.51%

Pledged Shares

Institutional Holding

ROCE (avg)

12.55%

ROE (avg)

21.62%

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

0.77

EV to EBIT

10.05

EV to EBITDA

7.30

EV to Capital Employed

0.91

EV to Sales

2.57

PEG Ratio

Dividend Yield

450.89%

ROCE (Latest)

9.03%

ROE (Latest)

15.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

1What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 37.02%

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 5,835.46 MM

ROCE(HY)

Lowest at 6.53%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.19 times

NET SALES(Q)

Lowest at HKD 5,183.26 MM

CASH AND EQV(HY)

Lowest at HKD 4,859.45 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.49 times

Here's what is working for China Water Affairs Group Ltd.

Dividend Payout Ratio

Highest at 37.02%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at HKD 585.53 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 585.53 MM has Grown at 8.38%

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 Water Affairs Group Ltd.

Net Sales

Lowest at HKD 5,183.26 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (HKD MM)

Debtors Turnover Ratio

Lowest at 1.19 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 5,835.46 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Cash and Eqv

Lowest at HKD 4,859.45 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio