COFCO Technology & Industry Co., Ltd () 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

COFCO Technology & Industry Co., Ltd

Why is COFCO Technology & Industry Co., Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 20.72% and Operating profit at 31.82% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at CNY 127.26 MM
INTEREST COVERAGE RATIO(Q) Lowest at 670.19
RAW MATERIAL COST(Y) Grown by 32.34% (YoY)

With ROE of 10.92%, it has a expensive valuation with a 2.60 Price to Book Value

Over the past year, while the stock has generated a return of -13.08%, its profits have risen by 5.4%

Below par performance in long term as well as near term

Along with generating -13.08% 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 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 Construction)

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

Is COFCO Technology & Industry Co., Ltd for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

COFCO Technology & Industry Co., Ltd

-100.0%

0.06

40.71%

China Shanghai Composite

17.07%

1.07

14.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.72%

EBIT Growth (5y)

31.82%

EBIT to Interest (avg)

85.58

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.79

Sales to Capital Employed (avg)

1.22

Tax Ratio

7.40%

Dividend Payout Ratio

32.88%

Pledged Shares

Institutional Holding

ROCE (avg)

36.32%

ROE (avg)

10.28%

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

2.60

EV to EBIT

17.67

EV to EBITDA

14.50

EV to Capital Employed

6.57

EV to Sales

1.45

PEG Ratio

Dividend Yield

ROCE (Latest)

37.19%

ROE (Latest)

10.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

7What is working for the Company

NET SALES(Q)

At CNY 655.81 MM has Grown at 51.05%

INVENTORY TURNOVER RATIO(HY)

Highest at 3.7 times

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 127.26 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 670.19

RAW MATERIAL COST(Y)

Grown by 32.34% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -64.23 %

INTEREST(Q)

Highest at CNY 4.84 MM

OPERATING PROFIT(Q)

Lowest at CNY 32.47 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.95 %

Here's what is working for COFCO Technology & Industry Co., Ltd

Net Sales

At CNY 655.81 MM has Grown at 51.05%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 3.7 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for COFCO Technology & Industry Co., Ltd

Operating Cash Flow

Lowest at CNY 127.26 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)

Interest

At CNY 4.84 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 670.19

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 4.84 MM

in the last five periods and Increased by inf% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 32.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -64.23 %

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

Raw Material Cost

Grown by 32.34% (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

Non Operating Income

Highest at CNY 0.31 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income