FangDa Carbon New Material Co., Ltd. (600516) 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

FangDa Carbon New Material Co., Ltd.

Why is FangDa Carbon New Material Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.77%

The company has been able to generate a Return on Capital Employed (avg) of 2.77% 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 -2.07% and Operating profit at -221.10% over the last 5 years

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

NET PROFIT(9M) At CNY 8.7 MM has Grown at -93.76%
NET SALES(9M) At CNY 2,597.91 MM has Grown at -16.82%
OPERATING CASH FLOW(Y) Lowest at CNY -350.43 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 22.88%, its profits have fallen by -143.1%
At the current price, the company has a high dividend yield of 0.4

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to FangDa Carbon New Material Co., Ltd. should be less than 10%
Overall Portfolio exposure to Building Products should be less than 30%

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

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

Is FangDa Carbon New Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

FangDa Carbon New Material Co., Ltd.

46.54%

0.88

39.46%

China Shanghai Composite

19.22%

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)

0.05%

EBIT Growth (5y)

-192.20%

EBIT to Interest (avg)

9.72

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.28

Sales to Capital Employed (avg)

0.22

Tax Ratio

7.72%

Dividend Payout Ratio

29.76%

Pledged Shares

Institutional Holding

ROCE (avg)

2.77%

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

1.50

EV to EBIT

-80.08

EV to EBITDA

-1728.47

EV to Capital Employed

1.69

EV to Sales

5.51

PEG Ratio

Dividend Yield

0.33%

ROCE (Latest)

-2.11%

ROE (Latest)

-0.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

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

19What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 2.68 times

NET SALES(Q)

Highest at CNY 992.79 MM

PRE-TAX PROFIT(Q)

Highest at CNY 79.94 MM

NET PROFIT(Q)

Highest at CNY 53.72 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -129.62 MM

DEBT-EQUITY RATIO (HY)

Highest at -27.03 %

OPERATING PROFIT(Q)

Lowest at CNY -43.88 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -4.42 %

Here's what is working for FangDa Carbon New Material Co., Ltd.

Pre-Tax Profit

At CNY 79.94 MM has Grown at 303.88%

over average net sales of the previous four periods of CNY -39.21 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 53.72 MM has Grown at 334.22%

over average net sales of the previous four periods of CNY -22.94 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 992.79 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 79.94 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 53.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debtors Turnover Ratio

Highest at 2.68 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for FangDa Carbon New Material Co., Ltd.

Operating Cash Flow

Lowest at CNY -129.62 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)

Operating Profit

Lowest at CNY -43.88 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -4.42 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -27.03 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio