Foshan Electrical & Lighting Co., Ltd. (000541) 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

Foshan Electrical & Lighting Co., Ltd.

Why is Foshan Electrical & Lighting Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 16.88% and Operating profit at -176.85% over the last 5 years

With a fall in Net Sales of -2.27%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 4 consecutive quarters
The company has declared negative results in Jun 25 after 2 consecutive negative quarters
INTEREST(HY) At CNY 13.28 MM has Grown at 47.87%
OPERATING CASH FLOW(Y) Lowest at CNY 307.19 MM
NET PROFIT(Q) At CNY 26.27 MM has Fallen at -59.24%

Below par performance in long term as well as near term

Along with generating -18.93% 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 Other Electrical Equipment)

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

Is Foshan Electrical & Lighting Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Foshan Electrical & Lighting Co., Ltd.

-18.93%

0.02

26.96%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.88%

EBIT Growth (5y)

-176.85%

EBIT to Interest (avg)

70.38

Debt to EBITDA (avg)

0.30

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.95

Tax Ratio

12.92%

Dividend Payout Ratio

35.74%

Pledged Shares

Institutional Holding

ROCE (avg)

4.26%

ROE (avg)

7.40%

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

0.83

EV to EBIT

-72.08

EV to EBITDA

13.65

EV to Capital Employed

0.83

EV to Sales

0.65

PEG Ratio

Dividend Yield

2.22%

ROCE (Latest)

-1.15%

ROE (Latest)

2.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-37What is not working for the Company

INTEREST(HY)

At CNY 13.28 MM has Grown at 47.87%

OPERATING CASH FLOW(Y)

Lowest at CNY 307.19 MM

NET PROFIT(Q)

At CNY 26.27 MM has Fallen at -59.24%

ROCE(HY)

Lowest at 2.6%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.35 times

OPERATING PROFIT(Q)

Lowest at CNY -13.63 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.65 %

RAW MATERIAL COST(Y)

Grown by 9.37% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -0.02 %

NET SALES(Q)

Lowest at CNY 2,096.45 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 11.83 MM

Here's what is not working for Foshan Electrical & Lighting Co., Ltd.

Interest

At CNY 13.28 MM has Grown at 47.87%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 11.83 MM has Fallen at -88.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 26.27 MM has Fallen at -59.24%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 307.19 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY -13.63 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.65 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.35 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at CNY 2,096.45 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

Lowest at CNY 11.83 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at -0.02 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 9.37% (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 3.29 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income