FESCO Group Co., Ltd. (600861) 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

FESCO Group Co., Ltd.

Why is FESCO Group Co., Ltd. ?

Flat results in Sep 25

INTEREST(Q) At CNY 3.62 MM has Grown at 27.32%
PRE-TAX PROFIT(Q) At CNY 324.7 MM has Fallen at -31.36%
NET PROFIT(Q) At CNY 193.67 MM has Fallen at -33.78%

With ROE of 20.98%, it has a very attractive valuation with a 1.53 Price to Book Value

Over the past year, while the stock has generated a return of -11.88%, its profits have risen by 37.4% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 3.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -11.88% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to FESCO Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is FESCO Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

FESCO Group Co., Ltd.

-21.57%

-0.35

26.85%

China Shanghai Composite

16.67%

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)

107.23%

EBIT Growth (5y)

56.64%

EBIT to Interest (avg)

13.22

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.13

Sales to Capital Employed (avg)

5.69

Tax Ratio

22.74%

Dividend Payout Ratio

50.00%

Pledged Shares

Institutional Holding

ROCE (avg)

11.41%

ROE (avg)

20.14%

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

1.53

EV to EBIT

3.98

EV to EBITDA

3.27

EV to Capital Employed

-3.80

EV to Sales

0.07

PEG Ratio

0.20

Dividend Yield

3.71%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

20.98%

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,315.61 MM

RAW MATERIAL COST(Y)

Fallen by -2.84% (YoY

NET PROFIT(9M)

Higher at CNY 1,006.43 MM

CASH AND EQV(HY)

Highest at CNY 16,223.7 MM

-4What is not working for the Company

INTEREST(Q)

At CNY 3.62 MM has Grown at 27.32%

PRE-TAX PROFIT(Q)

At CNY 324.7 MM has Fallen at -31.36%

NET PROFIT(Q)

At CNY 193.67 MM has Fallen at -33.78%

Here's what is working for FESCO Group Co., Ltd.

Operating Cash Flow

Highest at CNY 1,315.61 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)

Cash and Eqv

Highest at CNY 16,223.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -2.84% (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 FESCO Group Co., Ltd.

Interest

At CNY 3.62 MM has Grown at 27.32%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 324.7 MM has Fallen at -31.36%

over average net sales of the previous four periods of CNY 473.03 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 193.67 MM has Fallen at -33.78%

over average net sales of the previous four periods of CNY 292.46 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)