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

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 -6.06% and Operating profit at -317.24% over the last 5 years

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

NET PROFIT(Q) At CNY 5.2 MM has Fallen at -65%
CASH AND EQV(HY) Lowest at CNY 7,269.68 MM
NET SALES(Q) Lowest at CNY 1,979.96 MM

With ROE of 0.76%, it has a expensive valuation with a 1.82 Price to Book Value

Over the past year, while the stock has generated a return of -9.59%, its profits have fallen by -65.9%

Below par performance in long term as well as near term

Along with generating -9.59% 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Dongfeng Automobile Co., Ltd.

-23.74%

0.07

32.12%

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)

-8.31%

EBIT Growth (5y)

-297.00%

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)

0.92

Tax Ratio

9.01%

Dividend Payout Ratio

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

NA (Loss Making)

Industry P/E

Price to Book Value

1.51

EV to EBIT

-7.79

EV to EBITDA

-9.28

EV to Capital Employed

1.55

EV to Sales

1.27

PEG Ratio

Dividend Yield

0.08%

ROCE (Latest)

-19.94%

ROE (Latest)

-6.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

2What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 233.53 MM

-38What is not working for the Company

ROCE(HY)

Lowest at -5.97%

NET SALES(Q)

Lowest at CNY 1,847.13 MM

INTEREST(Q)

At CNY 8.48 MM has Grown at inf%

RAW MATERIAL COST(Y)

Grown by 565.5% (YoY

CASH AND EQV(HY)

Lowest at CNY 7,747.25 MM

OPERATING PROFIT(Q)

Lowest at CNY -754.16 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -40.83 %

PRE-TAX PROFIT(Q)

Lowest at CNY -708.01 MM

NET PROFIT(Q)

Lowest at CNY -583.53 MM

EPS(Q)

Lowest at CNY -0.29

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

Operating Cash Flow

Highest at CNY 233.53 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

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

Net Sales

At CNY 1,847.13 MM has Fallen at -25.89%

over average net sales of the previous four periods of CNY 2,492.4 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -708.01 MM has Fallen at -1,533.72%

over average net sales of the previous four periods of CNY -43.34 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -583.53 MM has Fallen at -1,038.81%

over average net sales of the previous four periods of CNY 62.16 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 1,847.13 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 8.48 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -754.16 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -40.83 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -708.01 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -583.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.29

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 7,747.25 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 565.5% (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