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Founder Securities Co., Ltd.

  • Market Cap: Large Cap
  • Industry: Capital Markets
  • ISIN: CNE1000015Y8
  • SHG: 601901
CNY
6.74
-0.13 (-1.89%)

Sep 24

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Founder Securities Co., Ltd.

Why is Founder Securities Co., Ltd. ?

1
Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 5.03%
  • Poor long term growth as Net Sales has grown by an annual rate of 7.60% and Operating profit at 15.87%
  • The company has been able to generate a Return on Equity (avg) of 5.03% signifying low profitability per unit of shareholders funds
2
Poor long term growth as Net Sales has grown by an annual rate of 7.60% and Operating profit at 15.87%
3
Flat results in Jun 26
  • NET SALES(9M) At CNY 9,057.32 MM has Grown at -21.67%
  • DEBT-EQUITY RATIO (HY) Highest at 259.09 %
  • DEBTORS TURNOVER RATIO(HY) Lowest at 0.25 times
4
With ROE of 7.46%, it has a fair valuation with a 1.12 Price to Book Value
  • Over the past year, while the stock has generated a return of -15.01%, its profits have risen by 81% ; the PEG ratio of the company is 0.2
  • At the current price, the company has a high dividend yield of 1.8
5
Underperformed the market in the last 1 year
  • Even though the market (China Shanghai Composite) has generated returns of 3.23% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -15.01% returns
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Founder Securities Co., Ltd. should be less than 10%
  2. Overall Portfolio exposure to Capital Markets should be less than 30%

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

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

Is Founder Securities Co., Ltd. for you?

Low Risk, Low Return

Absolute
Risk Adjusted
Volatility
Founder Securities Co., Ltd.
-16.06%
-0.71
20.35%
China Shanghai Composite
0.9%
0.22
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
7.60%
EBIT Growth (5y)
15.87%
EBIT to Interest (avg)
2.65
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0
Tax Ratio
17.85%
Dividend Payout Ratio
30.06%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
13.86%
ROE (avg)
5.03%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
15
Industry P/E
Price to Book Value
1.12
EV to EBIT
6.81
EV to EBITDA
6.40
EV to Capital Employed
1.17
EV to Sales
2.97
PEG Ratio
0.19
Dividend Yield
1.82%
ROCE (Latest)
17.15%
ROE (Latest)
7.46%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bullish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company
ROCE(HY)

Highest at 8.85%

RAW MATERIAL COST(Y)

Fallen by -9.3% (YoY

CASH AND EQV(HY)

Highest at CNY 26,123.03 MM

NET SALES(Q)

Highest at CNY 5,015.17 MM

PRE-TAX PROFIT(Q)

Highest at CNY 2,011.81 MM

-6What is not working for the Company
NET SALES(9M)

At CNY 9,057.32 MM has Grown at -21.67%

DEBT-EQUITY RATIO (HY)

Highest at 259.09 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.25 times

Here's what is working for Founder Securities Co., Ltd.

Net Sales
At CNY 5,015.17 MM has Grown at 71.77%
over average net sales of the previous four periods of CNY 2,919.66 MM
MOJO Watch
Near term sales trend is extremely positive

Net Sales (CNY MM)

Net Sales
Highest at CNY 5,015.17 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit
Highest at CNY 2,011.81 MM
in the last five periods
MOJO Watch
Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv
Highest at CNY 26,123.03 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost
Fallen by -9.3% (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 Founder Securities Co., Ltd.

Debt-Equity Ratio
Highest at 259.09 %
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

Debtors Turnover Ratio
Lowest at 0.25 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

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