FAWER Automotive Parts Ltd. Co. (000030) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

FAWER Automotive Parts Ltd. Co.

Why is FAWER Automotive Parts Ltd. Co. ?

Poor Management Efficiency with a low ROCE of 1.43%

The company has been able to generate a Return on Capital Employed (avg) of 1.43% 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 9.31% and Operating profit at 0.38% over the last 5 years

INTEREST COVERAGE RATIO(Q) Lowest at 725.52
DEBTORS TURNOVER RATIO(HY) Lowest at 3.07%
NET SALES(Q) Lowest at CNY 3,611.37 MM

With ROE of 11.68%, it has a attractive valuation with a 1.21 Price to Book Value

Over the past year, while the stock has generated a return of 2.32%, its profits have risen by 5.2% ; the PEG ratio of the company is 2
At the current price, the company has a high dividend yield of 2.6

Underperformed the market in the last 1 year

The stock has generated a return of 2.32% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to FAWER Automotive Parts Ltd. Co. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is FAWER Automotive Parts Ltd. Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

FAWER Automotive Parts Ltd. Co.

-100.0%

0.20

27.24%

China Shanghai Composite

15.19%

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)

9.31%

EBIT Growth (5y)

0.38%

EBIT to Interest (avg)

4.79

Debt to EBITDA (avg)

1.37

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

1.47

Tax Ratio

3.50%

Dividend Payout Ratio

38.15%

Pledged Shares

Institutional Holding

ROCE (avg)

1.43%

ROE (avg)

10.05%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.21

EV to EBIT

32.10

EV to EBITDA

12.59

EV to Capital Employed

1.18

EV to Sales

0.66

PEG Ratio

1.99

Dividend Yield

2.62%

ROCE (Latest)

3.68%

ROE (Latest)

11.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly 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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,250.65 MM

RAW MATERIAL COST(Y)

Fallen by -8.47% (YoY

-11What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 725.52

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.07%

NET SALES(Q)

Lowest at CNY 3,611.37 MM

INTEREST(Q)

Highest at CNY 6.84 MM

OPERATING PROFIT(Q)

Lowest at CNY 49.63 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.37 %

Here's what is working for FAWER Automotive Parts Ltd. Co.

Operating Cash Flow

Highest at CNY 1,250.65 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -8.47% (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 FAWER Automotive Parts Ltd. Co.

Net Sales

At CNY 3,611.37 MM has Fallen at -11.94%

over average net sales of the previous four periods of CNY 4,101.21 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 6.84 MM has Grown at 20.06%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 725.52

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 3,611.37 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 6.84 MM

in the last five periods and Increased by 20.06% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 49.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 3.07%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio