Do-Fluoride New Materials Co., Ltd. (002407) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Do-Fluoride New Materials Co., Ltd.

Why is Do-Fluoride New Materials Co., Ltd. ?

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 16.72% and Operating profit at -5.50% 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 13.10% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 16.72% and Operating profit at -5.50% over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

NET SALES(HY) At CNY 3,402.64 MM has Grown at -35.13%
NET PROFIT(HY) At CNY -268.92 MM has Grown at -405.83%
INTEREST(HY) At CNY 111.95 MM has Grown at 143.62%

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 156.54%, its profits have fallen by -236.7%
At the current price, the company has a high dividend yield of 1.4

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 Specialty Chemicals)

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

Is Do-Fluoride New Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Do-Fluoride New Materials Co., Ltd.

135.26%

3.34

46.18%

China Shanghai Composite

15.19%

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)

16.72%

EBIT Growth (5y)

-5.50%

EBIT to Interest (avg)

5.52

Debt to EBITDA (avg)

4.94

Net Debt to Equity (avg)

0.36

Sales to Capital Employed (avg)

0.64

Tax Ratio

33.71%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.51%

ROE (avg)

13.10%

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

1.86

EV to EBIT

-31.66

EV to EBITDA

48.78

EV to Capital Employed

1.62

EV to Sales

2.35

PEG Ratio

Dividend Yield

1.40%

ROCE (Latest)

-5.11%

ROE (Latest)

-6.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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

7What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 76.51 MM has Grown at 186.12%

NET PROFIT(Q)

At CNY 64.7 MM has Grown at 184.03%

RAW MATERIAL COST(Y)

Fallen by -104.1% (YoY

EPS(Q)

Highest at CNY 0.06

-28What is not working for the Company

NET SALES(HY)

At CNY 3,402.64 MM has Grown at -35.13%

NET PROFIT(HY)

At CNY -268.92 MM has Grown at -405.83%

INTEREST(HY)

At CNY 111.95 MM has Grown at 143.62%

ROCE(HY)

Lowest at -3.19%

DEBT-EQUITY RATIO (HY)

Highest at 41.56 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.67%

Here's what is working for Do-Fluoride New Materials Co., Ltd.

Pre-Tax Profit

At CNY 76.51 MM has Grown at 186.12%

over average net sales of the previous four periods of CNY -88.84 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 64.7 MM has Grown at 184.03%

over average net sales of the previous four periods of CNY -77 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Highest at CNY 64.7 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -104.1% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Do-Fluoride New Materials Co., Ltd.

Net Sales

At CNY 3,402.64 MM has Grown at -35.13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 111.95 MM has Grown at 143.62%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 41.56 %

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

Debtors Turnover Ratio

Lowest at 2.67%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio