ENN Natural Gas Co., Ltd. (600803) 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

ENN Natural Gas Co., Ltd.

Why is ENN Natural Gas Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 30.32%

The company has been able to generate a Return on Capital Employed (avg) of 30.32% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 2.81% and Operating profit at -3.27% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 60.57% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.81% and Operating profit at -3.27% over the last 5 years

Flat results in Jun 26

OPERATING CASH FLOW(Y) Lowest at CNY 13,955.56 MM
ROCE(HY) Lowest at 18.73%
INTEREST COVERAGE RATIO(Q) Lowest at 1,516.66

With ROE of 43.11%, it has a very expensive valuation with a 2.04 Price to Book Value

Over the past year, while the stock has generated a return of 2.73%, its profits have risen by 3.2%
At the current price, the company has a high dividend yield of 7.6

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 Gas)

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

Is ENN Natural Gas Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

ENN Natural Gas Co., Ltd.

2.87%

-0.26

31.40%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.81%

EBIT Growth (5y)

-3.27%

EBIT to Interest (avg)

10.74

Debt to EBITDA (avg)

1.33

Net Debt to Equity (avg)

0.71

Sales to Capital Employed (avg)

2.34

Tax Ratio

15.57%

Dividend Payout Ratio

75.00%

Pledged Shares

Institutional Holding

ROCE (avg)

28.03%

ROE (avg)

60.57%

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

2.04

EV to EBIT

6.26

EV to EBITDA

4.75

EV to Capital Employed

1.60

EV to Sales

0.52

PEG Ratio

Dividend Yield

7.60%

ROCE (Latest)

25.49%

ROE (Latest)

43.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Bullish

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

6What is working for the Company

CASH AND EQV(HY)

Highest at CNY 37,814.82 MM

DEBT-EQUITY RATIO (HY)

Lowest at 64.14 %

INVENTORY TURNOVER RATIO(HY)

Highest at 75.57 times

PRE-TAX PROFIT(Q)

Highest at CNY 3,776.68 MM

NET PROFIT(Q)

Highest at CNY 1,746.93 MM

EPS(Q)

Highest at CNY 0.47

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 13,955.56 MM

ROCE(HY)

Lowest at 18.73%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,516.66

RAW MATERIAL COST(Y)

Grown by 13.13% (YoY

INTEREST(Q)

Highest at CNY 272.5 MM

Here's what is working for ENN Natural Gas Co., Ltd.

Pre-Tax Profit

Highest at CNY 3,776.68 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1,746.93 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.47

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 37,814.82 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 64.14 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 75.57 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for ENN Natural Gas Co., Ltd.

Interest

At CNY 272.5 MM has Grown at 46.88%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,516.66

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 13,955.56 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 272.5 MM

in the last five periods and Increased by 46.88% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 13.13% (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

Non Operating Income

Highest at CNY 0.33 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income

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