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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

FESCO Group Co., Ltd.

Why is FESCO Group Co., Ltd. ?

Flat results in Mar 25

INTEREST(Q) At CNY 5.49 MM has Grown at 364.95%
INTEREST COVERAGE RATIO(Q) Lowest at 3,053.16
RAW MATERIAL COST(Y) Grown by 9.61% (YoY)

With ROE of 20.98%, it has a very attractive valuation with a 0.87 Price to Book Value

Over the past year, while the stock has generated a return of -8.51%, its profits have risen by 37.4% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 6.6

Below par performance in long term as well as near term

Along with generating -8.51% 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 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.

-9.7%

-0.17

32.31%

China Shanghai Composite

15.19%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

97.98%

EBIT Growth (5y)

59.52%

EBIT to Interest (avg)

13.22

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.13

Sales to Capital Employed (avg)

5.09

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

0.87

EV to EBIT

-2.30

EV to EBITDA

-1.89

EV to Capital Employed

2.19

EV to Sales

-0.04

PEG Ratio

0.11

Dividend Yield

6.56%

ROCE (Latest)

-95.32%

ROE (Latest)

20.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,475.02 MM

CASH AND EQV(HY)

Highest at CNY 16,232.58 MM

PRE-TAX PROFIT(Q)

Highest at CNY 993.14 MM

NET PROFIT(Q)

Highest at CNY 590.6 MM

EPS(Q)

Highest at CNY 1.04

-9What is not working for the Company

INTEREST(Q)

At CNY 5.49 MM has Grown at 364.95%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,053.16

RAW MATERIAL COST(Y)

Grown by 9.61% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 167.65 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.56 %

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

Pre-Tax Profit

At CNY 993.14 MM has Grown at 195.02%

over average net sales of the previous four periods of CNY 336.63 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 590.6 MM has Grown at 198.87%

over average net sales of the previous four periods of CNY 197.61 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 1,475.02 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 993.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 590.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 1.04

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 16,232.58 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.

Interest

At CNY 5.49 MM has Grown at 364.95%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 3,053.16

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 167.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.56 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 9.61% (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 0.84 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income