Daodaoquan Grain & Oil Co., Ltd. (002852) 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

Daodaoquan Grain & Oil Co., Ltd.

Why is Daodaoquan Grain & Oil Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 5.40%

The company has been able to generate a Return on Capital Employed (avg) of 5.40% 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 2.32% and Operating profit at 0.91% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.83% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 252.78 MM
RAW MATERIAL COST(Y) Grown by 44.69% (YoY)
NET PROFIT(Q) At CNY 39.66 MM has Fallen at -32.98%

Below par performance in long term as well as near term

Along with generating -18.35% 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 Other Agricultural Products)

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

Is Daodaoquan Grain & Oil Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Daodaoquan Grain & Oil Co., Ltd.

-22.43%

-0.02

36.90%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.32%

EBIT Growth (5y)

0.91%

EBIT to Interest (avg)

2.15

Debt to EBITDA (avg)

1.93

Net Debt to Equity (avg)

0.10

Sales to Capital Employed (avg)

1.84

Tax Ratio

25.75%

Dividend Payout Ratio

43.59%

Pledged Shares

Institutional Holding

ROCE (avg)

5.40%

ROE (avg)

2.83%

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

0.94

EV to EBIT

13.35

EV to EBITDA

8.12

EV to Capital Employed

0.94

EV to Sales

0.36

PEG Ratio

Dividend Yield

5.00%

ROCE (Latest)

7.07%

ROE (Latest)

7.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

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

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,812.46

CASH AND EQV(HY)

Highest at CNY 1,129.48 MM

DEBT-EQUITY RATIO (HY)

Lowest at 5.43 %

INVENTORY TURNOVER RATIO(HY)

Highest at 6.22 times

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 252.78 MM

RAW MATERIAL COST(Y)

Grown by 44.69% (YoY

NET PROFIT(Q)

At CNY 39.66 MM has Fallen at -32.98%

EPS(Q)

Lowest at CNY 0.04

Here's what is working for Daodaoquan Grain & Oil Co., Ltd.

Interest Coverage Ratio

Highest at 2,812.46

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Cash and Eqv

Highest at CNY 1,129.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 5.43 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 6.22 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 Daodaoquan Grain & Oil Co., Ltd.

Operating Cash Flow

Lowest at CNY 252.78 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)

Net Profit

At CNY 39.66 MM has Fallen at -32.98%

over average net sales of the previous four periods of CNY 59.18 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 44.69% (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