Fuda Alloy Materials Co., Ltd. (603045) 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

Fuda Alloy Materials Co., Ltd.

Why is Fuda Alloy Materials Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 20.99% and Operating profit at 0.28% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.91% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 20.99% and Operating profit at 0.28% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -509.9 MM
INTEREST(HY) At CNY 33.81 MM has Grown at 17.11%
NET PROFIT(Q) At CNY -5.12 MM has Fallen at -144.9%

With ROE of 3.41%, it has a very expensive valuation with a 1.78 Price to Book Value

Over the past year, while the stock has generated a return of 44.60%, its profits have fallen by -34%
At the current price, the company has a high dividend yield of 0.5

Market Beating performance in long term as well as near term

Along with generating 44.60% returns in the last 1 year, the stock has outperformed 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 Fuda Alloy Materials Co., Ltd. should be less than 10%
Overall Portfolio exposure to Minerals & Mining should be less than 30%

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

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

Is Fuda Alloy Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Fuda Alloy Materials Co., Ltd.

47.36%

1.98

48.12%

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)

20.99%

EBIT Growth (5y)

0.28%

EBIT to Interest (avg)

1.49

Debt to EBITDA (avg)

7.53

Net Debt to Equity (avg)

1.40

Sales to Capital Employed (avg)

1.43

Tax Ratio

9.39%

Dividend Payout Ratio

18.11%

Pledged Shares

Institutional Holding

ROCE (avg)

4.74%

ROE (avg)

4.91%

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

1.78

EV to EBIT

50.80

EV to EBITDA

26.73

EV to Capital Employed

1.33

EV to Sales

0.70

PEG Ratio

Dividend Yield

0.47%

ROCE (Latest)

2.63%

ROE (Latest)

3.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

9What is working for the Company

NET SALES(HY)

At CNY 2,163.44 MM has Grown at 44.75%

INVENTORY TURNOVER RATIO(HY)

Highest at 4.86%

DEBTORS TURNOVER RATIO(HY)

Highest at 6.31%

-36What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -509.9 MM

INTEREST(HY)

At CNY 33.81 MM has Grown at 17.11%

NET PROFIT(Q)

At CNY -5.12 MM has Fallen at -144.9%

ROCE(HY)

Lowest at 3.53%

DEBT-EQUITY RATIO (HY)

Highest at 141.31 %

INTEREST COVERAGE RATIO(Q)

Lowest at 36.99

RAW MATERIAL COST(Y)

Grown by 29.41% (YoY

CASH AND EQV(HY)

Lowest at CNY 308.64 MM

OPERATING PROFIT(Q)

Lowest at CNY 6.35 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.63 %

PRE-TAX PROFIT(Q)

Lowest at CNY -4.3 MM

EPS(Q)

Lowest at CNY -0.04

Here's what is working for Fuda Alloy Materials Co., Ltd.

Net Sales

At CNY 2,163.44 MM has Grown at 44.75%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 4.86% and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 6.31%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Fuda Alloy Materials Co., Ltd.

Pre-Tax Profit

At CNY -4.3 MM has Fallen at -137.4%

over average net sales of the previous four periods of CNY 11.51 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -5.12 MM has Fallen at -144.9%

over average net sales of the previous four periods of CNY 11.41 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 33.81 MM has Grown at 17.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -509.9 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)

Interest Coverage Ratio

Lowest at 36.99

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 141.31 % and Grown

In each half year 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

Operating Profit

Lowest at CNY 6.35 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -4.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -5.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 308.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 29.41% (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