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 8.60% and Operating profit at -4.96% over the last 5 years

INTEREST(HY) At CNY 14.22 MM has Grown at 17.23%
INTEREST COVERAGE RATIO(Q) Lowest at 672.26
DEBTORS TURNOVER RATIO(HY) Lowest at 3.01 times

With ROE of 11.68%, it has a attractive valuation with a 1.20 Price to Book Value

Over the past year, while the stock has generated a return of -15.49%, 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 2.7

Below par performance in long term as well as near term

Along with generating -15.49% 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 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.

-15.49%

-0.30

25.98%

China Shanghai Composite

16.67%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.60%

EBIT Growth (5y)

-4.96%

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

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

1.20

EV to EBIT

31.76

EV to EBITDA

12.46

EV to Capital Employed

1.17

EV to Sales

0.65

PEG Ratio

1.97

Dividend Yield

2.65%

ROCE (Latest)

3.68%

ROE (Latest)

11.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly 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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,314.97 MM

CASH AND EQV(HY)

Highest at CNY 4,219.57 MM

-13What is not working for the Company

INTEREST(HY)

At CNY 14.22 MM has Grown at 17.23%

INTEREST COVERAGE RATIO(Q)

Lowest at 672.26

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.01 times

OPERATING PROFIT(Q)

Lowest at CNY 43.74 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.02 %

PRE-TAX PROFIT(Q)

Lowest at CNY 75.63 MM

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

Operating Cash Flow

Highest at CNY 1,314.97 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 4,219.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for FAWER Automotive Parts Ltd. Co.

Interest

At CNY 14.22 MM has Grown at 17.23%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 672.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 43.74 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 75.63 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 75.63 MM has Fallen at -40.19%

over average net sales of the previous four periods of CNY 126.45 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 3.01 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio