Chongqing Changan Automobile Co. Ltd. (000625) 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

Chongqing Changan Automobile Co. Ltd.

Why is Chongqing Changan Automobile Co. Ltd. ?

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

OPERATING CASH FLOW(Y) Lowest at CNY 2,152.97 MM
NET PROFIT(Q) At CNY 734.03 MM has Fallen at -56.64%
OPERATING PROFIT MARGIN(Q) Lowest at -0.26 %

With ROE of 7.42%, it has a very attractive valuation with a 1.42 Price to Book Value

Over the past year, while the stock has generated a return of -22.23%, its profits have risen by 17.2% ; the PEG ratio of the company is 1.2

Below par performance in long term as well as near term

Along with generating -22.23% 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 hold?

Overall Portfolio exposure to Chongqing Changan Automobile Co. Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Chongqing Changan Automobile Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Chongqing Changan Automobile Co. Ltd.

-21.46%

-1.17

20.93%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.12%

EBIT Growth (5y)

12.62%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

1.36

Tax Ratio

10.16%

Dividend Payout Ratio

39.68%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

5.95%

ROE (avg)

8.60%

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

1.42

EV to EBIT

-745.15

EV to EBITDA

14.22

EV to Capital Employed

1.60

EV to Sales

0.55

PEG Ratio

1.16

Dividend Yield

2.26%

ROCE (Latest)

-0.21%

ROE (Latest)

7.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -19.32% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 5.13 times

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 2,152.97 MM

NET PROFIT(Q)

At CNY 734.03 MM has Fallen at -56.64%

OPERATING PROFIT MARGIN(Q)

Lowest at -0.26 %

OPERATING PROFIT(Q)

Lowest at CNY -111.32 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 216.12 MM

Here's what is working for Chongqing Changan Automobile Co. Ltd.

Debtors Turnover Ratio

Highest at 5.13 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -19.32% (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 Chongqing Changan Automobile Co. Ltd.

Pre-Tax Profit

At CNY 216.12 MM has Fallen at -87.21%

over average net sales of the previous four periods of CNY 1,690.07 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 734.03 MM has Fallen at -56.64%

over average net sales of the previous four periods of CNY 1,692.97 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 2,152.97 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit Margin

Lowest at -0.26 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY -111.32 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 216.12 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)