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.

-33.96%

-0.35

26.85%

China Shanghai Composite

21.28%

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)

130.81%

EBIT Growth (5y)

91.56%

EBIT to Interest (avg)

13.22

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.13

Sales to Capital Employed (avg)

6.25

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

0.59

EV to EBIT

-5.64

EV to EBITDA

-4.64

EV to Capital Employed

6.02

EV to Sales

-0.08

PEG Ratio

Dividend Yield

8.81%

ROCE (Latest)

-106.90%

ROE (Latest)

14.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

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

CASH AND EQV(HY)

Highest at CNY 16,933.02 MM

-15What is not working for the Company

NET PROFIT(HY)

At CNY 421.39 MM has Grown at -43.09%

ROCE(HY)

Lowest at 11.46%

INTEREST(Q)

At CNY 2.48 MM has Grown at inf%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,721.72

RAW MATERIAL COST(Y)

Grown by 11.7% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 67.39 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.59 %

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

Cash and Eqv

Highest at CNY 16,933.02 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 FESCO Group Co., Ltd.

Net Profit

At CNY 421.39 MM has Grown at -43.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 2.48 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 2,721.72

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 67.39 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 11.7% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at CNY 0.88 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income