Emei Shan Tourism Co., Ltd. (000888) 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

Emei Shan Tourism Co., Ltd.

Why is Emei Shan Tourism Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.74%

The company has been able to generate a Return on Capital Employed (avg) of 4.74% 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 11.95% and Operating profit at 88.51% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 372.08 MM
ROCE(HY) Lowest at 8.16%
INTEREST(Q) At CNY 4.64 MM has Grown at 18.17%

With ROE of 4.86%, it has a attractive valuation with a 1.89 Price to Book Value

Over the past year, while the stock has generated a return of -30.93%, its profits have fallen by -16.3%

Below par performance in long term as well as near term

Along with generating -30.93% 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 hold?

Overall Portfolio exposure to Emei Shan Tourism Co., Ltd. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Emei Shan Tourism Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Emei Shan Tourism Co., Ltd.

-30.66%

-0.57

30.28%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.95%

EBIT Growth (5y)

88.51%

EBIT to Interest (avg)

2.53

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.32

Tax Ratio

25.45%

Dividend Payout Ratio

55.08%

Pledged Shares

Institutional Holding

ROCE (avg)

4.74%

ROE (avg)

2.09%

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

1.89

EV to EBIT

19.58

EV to EBITDA

12.88

EV to Capital Employed

2.97

EV to Sales

3.95

PEG Ratio

Dividend Yield

3.38%

ROCE (Latest)

15.16%

ROE (Latest)

4.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly 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

5What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -54.5 %

RAW MATERIAL COST(Y)

Fallen by -20.15% (YoY

CASH AND EQV(HY)

Highest at CNY 3,376.13 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 12.65 times

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 372.08 MM

ROCE(HY)

Lowest at 8.16%

INTEREST(Q)

At CNY 4.64 MM has Grown at 18.17%

Here's what is working for Emei Shan Tourism Co., Ltd.

Debt-Equity Ratio

Lowest at -54.5 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at CNY 3,376.13 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 12.65 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -20.15% (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 Emei Shan Tourism Co., Ltd.

Operating Cash Flow

Lowest at CNY 372.08 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 4.64 MM has Grown at 18.17%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)