CNOOC Energy Technology & Services Ltd. (600968) 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

CNOOC Energy Technology & Services Ltd.

Why is CNOOC Energy Technology & Services Ltd. ?

Poor Management Efficiency with a low ROCE of 15.47%

The company has been able to generate a Return on Capital Employed (avg) of 15.47% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 8.17% and Operating profit at 21.57% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 10.74% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.17% and Operating profit at 21.57% over the last 5 years

Negative results in Jun 26

OPERATING CASH FLOW(Y) Lowest at CNY 3,599.94 MM
ROCE(HY) Lowest at 13.66%
RAW MATERIAL COST(Y) Grown by 8.88% (YoY)

With ROE of 13.40%, it has a attractive valuation with a 1.16 Price to Book Value

Over the past year, while the stock has generated a return of 4.16%, its profits have risen by 6.9% ; the PEG ratio of the company is 1.2
At the current price, the company has a high dividend yield of 4.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to CNOOC Energy Technology & Services 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 Energy Technology & Services Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

CNOOC Energy Technology & Services Ltd.

2.09%

-0.07

36.21%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.17%

EBIT Growth (5y)

21.57%

EBIT to Interest (avg)

34.82

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

1.72

Tax Ratio

17.87%

Dividend Payout Ratio

38.47%

Pledged Shares

Institutional Holding

ROCE (avg)

16.96%

ROE (avg)

10.74%

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

1.16

EV to EBIT

6.50

EV to EBITDA

4.54

EV to Capital Employed

1.19

EV to Sales

0.60

PEG Ratio

1.24

Dividend Yield

4.29%

ROCE (Latest)

18.24%

ROE (Latest)

13.40%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

2What is working for the Company

PRE-TAX PROFIT(Q)

Highest at CNY 1,393.78 MM

NET PROFIT(Q)

Highest at CNY 1,225.8 MM

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 3,599.94 MM

ROCE(HY)

Lowest at 13.66%

RAW MATERIAL COST(Y)

Grown by 8.88% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -11.42 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 30.4 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.19 times

Here's what is working for CNOOC Energy Technology & Services Ltd.

Pre-Tax Profit

Highest at CNY 1,393.78 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1,225.8 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Here's what is not working for CNOOC Energy Technology & Services Ltd.

Operating Cash Flow

Lowest at CNY 3,599.94 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)

Debt-Equity Ratio

Highest at -11.42 %

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 30.4 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 3.19 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 8.88% (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