China West Construction Co., Ltd. (002302) 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 West Construction Co., Ltd.

Why is China West Construction Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -7.28% and Operating profit at -183.52% over the last 5 years

The company has declared negative results for the last 9 consecutive quarters

NET PROFIT(HY) At CNY -757.25 MM has Grown at -43.98%
OPERATING CASH FLOW(Y) Lowest at CNY 35.3 MM
ROCE(HY) Lowest at -8.56%

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 -17.61%, its profits have fallen by -83.9%
At the current price, the company has a high dividend yield of 2.5

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -17.61% returns in the last 1 year, the stock has also underperformed China Shanghai Composite 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 Building Products)

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

Is China West Construction Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

China West Construction Co., Ltd.

-18.21%

-0.39

38.04%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.28%

EBIT Growth (5y)

-183.52%

EBIT to Interest (avg)

10.46

Debt to EBITDA (avg)

2.12

Net Debt to Equity (avg)

0.26

Sales to Capital Employed (avg)

1.51

Tax Ratio

10.86%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.88%

ROE (avg)

7.98%

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

0.80

EV to EBIT

-15.71

EV to EBITDA

-163.33

EV to Capital Employed

0.86

EV to Sales

0.53

PEG Ratio

Dividend Yield

2.55%

ROCE (Latest)

-5.45%

ROE (Latest)

-8.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -163.33% (YoY

-22What is not working for the Company

NET PROFIT(HY)

At CNY -757.25 MM has Grown at -43.98%

OPERATING CASH FLOW(Y)

Lowest at CNY 35.3 MM

ROCE(HY)

Lowest at -8.56%

CASH AND EQV(HY)

Lowest at CNY 4,479.81 MM

DEBT-EQUITY RATIO (HY)

Highest at 46.53 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 34.23 times

NET SALES(Q)

Lowest at CNY 3,180.43 MM

Here's what is working for China West Construction Co., Ltd.

Raw Material Cost

Fallen by -163.33% (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

Here's what is not working for China West Construction Co., Ltd.

Net Profit

At CNY -757.25 MM has Grown at -43.98%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 35.3 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 3,180.43 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -14.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 4,479.81 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 46.53 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 34.23 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio