Costar Group Co., Ltd. (002189) 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

Costar Group Co., Ltd.

Why is Costar Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.61%

The company has been able to generate a Return on Capital Employed (avg) of 3.61% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -14.37% and Operating profit at -253.56% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.05% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -14.37% and Operating profit at -253.56% over the last 5 years

With a fall in Net Sales of -26.75%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY -201.21 MM
INTEREST(HY) At CNY 13.2 MM has Grown at 12.53%
PRE-TAX PROFIT(Q) At CNY -64.87 MM has Fallen at -432.57%

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 5.91%, its profits have fallen by -176.1%

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 Electronics & Appliances)

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

Is Costar Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Costar Group Co., Ltd.

6.98%

1.47

49.41%

China Shanghai Composite

22.49%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-17.70%

EBIT Growth (5y)

-245.42%

EBIT to Interest (avg)

-5.15

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.10

Sales to Capital Employed (avg)

1.06

Tax Ratio

1.61%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.61%

ROE (avg)

4.05%

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

10.02

EV to EBIT

-13.62

EV to EBITDA

-17.50

EV to Capital Employed

4.67

EV to Sales

4.79

PEG Ratio

Dividend Yield

ROCE (Latest)

-34.33%

ROE (Latest)

-86.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

3What is working for the Company

NET PROFIT(HY)

Higher at CNY -123.3 MM

-37What is not working for the Company

NET SALES(Q)

At CNY 351.33 MM has Fallen at -30.17%

PRE-TAX PROFIT(Q)

At CNY -67.04 MM has Fallen at -106.81%

NET PROFIT(Q)

At CNY -71.13 MM has Fallen at -98.38%

INTEREST(HY)

At CNY 16.98 MM has Grown at 8.42%

ROCE(HY)

Lowest at -67.34%

DEBT-EQUITY RATIO (HY)

Highest at 166.07 %

RAW MATERIAL COST(Y)

Grown by 68.04% (YoY

CASH AND EQV(HY)

Lowest at CNY 532.24 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.02 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.21 times

Here's what is not working for Costar Group Co., Ltd.

Net Sales

At CNY 351.33 MM has Fallen at -30.17%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -67.04 MM has Fallen at -106.81%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -71.13 MM has Fallen at -98.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 16.98 MM has Grown at 8.42%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 166.07 % and Grown

In each half year 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

Cash and Eqv

Lowest at CNY 532.24 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 4.02 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 1.21 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 68.04% (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