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

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 7.65% and Operating profit at 9.13% over the last 5 years

With a fall in Net Sales of -28.77%, the company declared Very Negative results in Mar 26

INTEREST(HY) At CNY 15.68 MM has Grown at 25.06%
ROCE(HY) Lowest at 7.98%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.89 times

Below par performance in long term as well as near term

Along with generating -28.81% 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 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 Auto Components & Equipments)

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

Is FAWER Automotive Parts Ltd. Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

FAWER Automotive Parts Ltd. Co.

-30.67%

-0.85

27.14%

China Shanghai Composite

19.22%

1.46

13.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.65%

EBIT Growth (5y)

9.13%

EBIT to Interest (avg)

4.79

Debt to EBITDA (avg)

1.37

Net Debt to Equity (avg)

0.19

Sales to Capital Employed (avg)

1.49

Tax Ratio

3.50%

Dividend Payout Ratio

36.72%

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

0.92

EV to EBIT

27.65

EV to EBITDA

12.24

EV to Capital Employed

0.93

EV to Sales

0.54

PEG Ratio

Dividend Yield

3.25%

ROCE (Latest)

3.36%

ROE (Latest)

10.52%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.62% (YoY

-23What is not working for the Company

INTEREST(HY)

At CNY 15.68 MM has Grown at 25.06%

ROCE(HY)

Lowest at 7.98%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.89 times

NET SALES(Q)

At CNY 3,751.78 MM has Fallen at -13.8%

INTEREST COVERAGE RATIO(Q)

Lowest at 216.53

PRE-TAX PROFIT(Q)

At CNY 75.71 MM has Fallen at -43.28%

INVENTORY TURNOVER RATIO(HY)

Lowest at 10.3 times

OPERATING PROFIT(Q)

Lowest at CNY 17.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.46 %

NET PROFIT(Q)

Lowest at CNY 129.62 MM

EPS(Q)

Lowest at CNY 0.07

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

Raw Material Cost

Fallen by -5.62% (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.

Interest

At CNY 15.68 MM has Grown at 25.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 3,751.78 MM has Fallen at -13.8%

over average net sales of the previous four periods of CNY 4,352.6 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 216.53

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 75.71 MM has Fallen at -43.28%

over average net sales of the previous four periods of CNY 133.48 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 2.89 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 17.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 129.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 10.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 0.95 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income