Dongfeng Automobile Co., Ltd. (600006) 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

Dongfeng Automobile Co., Ltd.

Why is Dongfeng Automobile Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.16%

The company has been able to generate a Return on Capital Employed (avg) of 0.16% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -5.11% and Operating profit at -309.38% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET SALES(9M) At CNY 7,725.51 MM has Grown at -21.72%
NET PROFIT(9M) At CNY 116.35 MM has Grown at -55.36%
OPERATING CASH FLOW(Y) Lowest at CNY -1,155.5 MM

With ROE of 0.76%, it has a expensive valuation with a 1.83 Price to Book Value

Over the past year, while the stock has generated a return of -5.35%, its profits have fallen by -65.9%

Below par performance in long term as well as near term

Along with generating -5.35% 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 Automobiles)

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

Is Dongfeng Automobile Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Dongfeng Automobile Co., Ltd.

-5.35%

0.27

39.59%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.11%

EBIT Growth (5y)

-309.38%

EBIT to Interest (avg)

-133.73

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

0.94

Tax Ratio

9.01%

Dividend Payout Ratio

34.25%

Pledged Shares

Institutional Holding

ROCE (avg)

0.16%

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

241

Industry P/E

Price to Book Value

1.83

EV to EBIT

-12.31

EV to EBITDA

-15.58

EV to Capital Employed

1.84

EV to Sales

1.50

PEG Ratio

Dividend Yield

0.07%

ROCE (Latest)

-14.92%

ROE (Latest)

0.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

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

8What is working for the Company

NET PROFIT(Q)

At CNY 150.13 MM has Grown at 1,826.67%

PRE-TAX PROFIT(Q)

At CNY 32.53 MM has Grown at 133.55%

EPS(Q)

Highest at CNY 0.08

-17What is not working for the Company

NET SALES(9M)

At CNY 7,725.51 MM has Grown at -21.72%

NET PROFIT(9M)

At CNY 116.35 MM has Grown at -55.36%

OPERATING CASH FLOW(Y)

Lowest at CNY -1,155.5 MM

ROCE(HY)

Lowest at 0.48%

RAW MATERIAL COST(Y)

Grown by 36.38% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.63%

Here's what is working for Dongfeng Automobile Co., Ltd.

Net Profit

At CNY 150.13 MM has Grown at 1,826.67%

over average net sales of the previous four periods of CNY 7.79 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 32.53 MM has Grown at 133.55%

over average net sales of the previous four periods of CNY -96.96 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

EPS

Highest at CNY 0.08

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Dongfeng Automobile Co., Ltd.

Operating Cash Flow

Lowest at CNY -1,155.5 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 Sales

At CNY 5,552.26 MM has Grown at -9.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 1.63%

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 36.38% (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