Daqian Ecology & Environment Group Co., Ltd. (603955) 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

Daqian Ecology & Environment Group Co., Ltd.

Why is Daqian Ecology & Environment Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.35%

The company has been able to generate a Return on Capital Employed (avg) of 1.35% 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 -27.76% and Operating profit at -192.06% 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 3.00% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -27.76% and Operating profit at -192.06% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at CNY -19.3 MM
CASH AND EQV(HY) Lowest at CNY 266.09 MM
OPERATING PROFIT(Q) Lowest at CNY -42.17 MM

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 46.61%, its profits have risen by 114% ; the PEG ratio of the company is 3.8

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 Miscellaneous)

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

Is Daqian Ecology & Environment Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Daqian Ecology & Environment Group Co., Ltd.

-33.42%

4.04

51.12%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-14.36%

EBIT Growth (5y)

-215.03%

EBIT to Interest (avg)

-0.35

Debt to EBITDA (avg)

9.53

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.09

Tax Ratio

27.85%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.35%

ROE (avg)

3.00%

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

1.20

EV to EBIT

-9.07

EV to EBITDA

-10.10

EV to Capital Employed

1.16

EV to Sales

4.68

PEG Ratio

Dividend Yield

ROCE (Latest)

-12.77%

ROE (Latest)

-10.60%

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

Mildly Bearish

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

16What is working for the Company

NET SALES(Q)

At CNY 96.46 MM has Grown at 346.22%

INVENTORY TURNOVER RATIO(HY)

Highest at 15.04 times

DEBTORS TURNOVER RATIO(HY)

Highest at 0.81 times

-28What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -100.94 MM

PRE-TAX PROFIT(Q)

At CNY -29.67 MM has Fallen at -561.84%

NET PROFIT(Q)

At CNY -12.65 MM has Fallen at -640.96%

ROCE(HY)

Lowest at -9.2%

INTEREST(Q)

At CNY 4.52 MM has Grown at 12.24%

RAW MATERIAL COST(Y)

Grown by 51.28% (YoY

CASH AND EQV(HY)

Lowest at CNY 277.79 MM

DEBT-EQUITY RATIO (HY)

Highest at 26.95 %

Here's what is working for Daqian Ecology & Environment Group Co., Ltd.

Net Sales

At CNY 96.46 MM has Grown at 346.22%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 15.04 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 0.81 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Daqian Ecology & Environment Group Co., Ltd.

Pre-Tax Profit

At CNY -29.67 MM has Fallen at -561.84%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -12.65 MM has Fallen at -640.96%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -100.94 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)

Interest

At CNY 4.52 MM has Grown at 12.24%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 277.79 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 26.95 %

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 51.28% (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