Est Tools Co., Ltd. (300488) 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

Est Tools Co., Ltd.

Why is Est Tools Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.85% and Operating profit at 9.36% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At CNY 12.79 MM has Grown at 135.16%
OPERATING CASH FLOW(Y) Lowest at CNY 175.19 MM
NET PROFIT(HY) At CNY 53.8 MM has Grown at -24.76%

With ROE of 7.82%, it has a fair valuation with a 1.09 Price to Book Value

Over the past year, while the stock has generated a return of 38.98%, its profits have fallen by -10.1%
At the current price, the company has a high dividend yield of 5.2

Market Beating Performance

The stock has generated a return of 38.98% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Est Tools Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

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

Is Est Tools Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Est Tools Co., Ltd.

25.63%

1.06

60.05%

China Shanghai Composite

14.77%

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)

13.85%

EBIT Growth (5y)

9.36%

EBIT to Interest (avg)

40.43

Debt to EBITDA (avg)

0.27

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

0.32

Tax Ratio

13.52%

Dividend Payout Ratio

73.06%

Pledged Shares

Institutional Holding

ROCE (avg)

10.63%

ROE (avg)

10.13%

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

1.09

EV to EBIT

9.86

EV to EBITDA

5.90

EV to Capital Employed

1.12

EV to Sales

2.31

PEG Ratio

Dividend Yield

5.18%

ROCE (Latest)

11.32%

ROE (Latest)

7.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

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

6What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.49%

RAW MATERIAL COST(Y)

Fallen by -1.72% (YoY

CASH AND EQV(HY)

Highest at CNY 1,575.43 MM

DEBT-EQUITY RATIO (HY)

Lowest at -20.34 %

DEBTORS TURNOVER RATIO(HY)

Highest at 2.38%

-21What is not working for the Company

INTEREST(HY)

At CNY 12.79 MM has Grown at 135.16%

OPERATING CASH FLOW(Y)

Lowest at CNY 175.19 MM

NET PROFIT(HY)

At CNY 53.8 MM has Grown at -24.76%

INTEREST COVERAGE RATIO(Q)

Lowest at 524.53

OPERATING PROFIT MARGIN(Q)

Lowest at 21.4 %

OPERATING PROFIT(Q)

Lowest at CNY 31.4 MM

Here's what is working for Est Tools Co., Ltd.

Inventory Turnover Ratio

Highest at 2.49% and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CNY 1,575.43 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -20.34 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 2.38%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.72% (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 Est Tools Co., Ltd.

Interest

At CNY 12.79 MM has Grown at 135.16%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 175.19 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 Coverage Ratio

Lowest at 524.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 21.4 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 53.8 MM has Grown at -24.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 31.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)