CNOOC Ltd. (883) 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

United Energy Group Ltd.

CITIC Resources Holdings Ltd.

CNOOC Ltd.

China Petroleum & Chemical Corp.

Tian Lun Gas Holdings Ltd.

China Huarong Energy Co. Ltd.

Productive Technologies Co. Ltd.

CHK Oil Ltd.

Wisdom Wealth Resources Investment Holding Group Ltd.

PetroChina Co., Ltd.

Enviro Energy International Holdings Ltd.

Why is CNOOC Ltd. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 16.61%

Healthy long term growth as Net Sales has grown by an annual rate of 14.25% and Operating profit at 23.13%
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 49.44

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at HKD 473,924.55 MM
DIVIDEND PAYOUT RATIO(Y) Highest at 46.46%
RAW MATERIAL COST(Y) Fallen by -2.89% (YoY)

With ROE of 18.80%, it has a Fair valuation with a 1.09 Price to Book Value

Over the past year, while the stock has generated a return of 43.42%, its profits have risen by 9% ; the PEG ratio of the company is 0.6

Market Beating performance in long term as well as near term

Along with generating 43.42% returns in the last 1 year, the stock has outperformed Hang Seng Hong Kong 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 CNOOC Ltd. should be less than 10%
Overall Portfolio exposure to Oil should be less than 30%

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

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

Is CNOOC Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

CNOOC Ltd.

43.42%

54.37

31.74%

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)

14.25%

EBIT Growth (5y)

23.13%

EBIT to Interest (avg)

49.44

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.46

Tax Ratio

27.64%

Dividend Payout Ratio

44.52%

Pledged Shares

Institutional Holding

ROCE (avg)

26.48%

ROE (avg)

16.61%

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

1.09

EV to EBIT

3.57

EV to EBITDA

2.54

EV to Capital Employed

1.11

EV to Sales

1.67

PEG Ratio

0.64

Dividend Yield

0.21%

ROCE (Latest)

31.10%

ROE (Latest)

18.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 473,924.55 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 46.46%

RAW MATERIAL COST(Y)

Fallen by -2.89% (YoY

CASH AND EQV(HY)

Highest at HKD 281,226.21 MM

DEBT-EQUITY RATIO (HY)

Lowest at -23.43 %

OPERATING PROFIT MARGIN(Q)

Highest at 67.67 %

-4What is not working for the Company

ROCE(HY)

Lowest at 16.87%

INVENTORY TURNOVER RATIO(HY)

Lowest at 28.85 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.01 times

Here's what is working for CNOOC Ltd.

Operating Cash Flow

Highest at HKD 473,924.55 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)

Dividend Payout Ratio

Highest at 46.46% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Operating Profit Margin

Highest at 67.67 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at HKD 281,226.21 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -23.43 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -2.89% (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

Depreciation

Highest at HKD 44,286.17 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Here's what is not working for CNOOC Ltd.

Inventory Turnover Ratio

Lowest at 28.85 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 9.01 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio