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

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 19.22% and Operating profit at 6.27% 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 19.22% and Operating profit at 6.27% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY -445.1 MM
INTEREST(9M) At CNY 48.63 MM has Grown at 7.21%
DEBTORS TURNOVER RATIO(HY) Lowest at 5.71 times

With ROE of 3.41%, it has a very expensive valuation with a 2.75 Price to Book Value

Over the past year, while the stock has generated a return of 100.27%, its profits have fallen by -34%
At the current price, the company has a high dividend yield of 0.3

Market Beating performance in long term as well as near term

Along with generating 100.27% 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 buy?

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.

284.19%

4.06

47.82%

China Shanghai Composite

20.96%

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)

19.22%

EBIT Growth (5y)

6.27%

EBIT to Interest (avg)

1.49

Debt to EBITDA (avg)

7.53

Net Debt to Equity (avg)

1.40

Sales to Capital Employed (avg)

1.61

Tax Ratio

9.39%

Dividend Payout Ratio

18.55%

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

4.16

EV to EBIT

58.85

EV to EBITDA

40.76

EV to Capital Employed

2.37

EV to Sales

1.20

PEG Ratio

3.69

Dividend Yield

0.20%

ROCE (Latest)

4.03%

ROE (Latest)

5.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Bullish

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

44What is working for the Company

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

ROCE(HY)

Highest at 26.54%

NET SALES(Q)

Highest at CNY 1,942.3 MM

OPERATING PROFIT(Q)

Highest at CNY 228.82 MM

OPERATING PROFIT MARGIN(Q)

Highest at 11.78 %

NET PROFIT(Q)

Highest at CNY 181.06 MM

RAW MATERIAL COST(Y)

Fallen by -240.58% (YoY

CASH AND EQV(HY)

Highest at CNY 613.7 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 7.25 times

PRE-TAX PROFIT(Q)

Highest at CNY 209.28 MM

EPS(Q)

Highest at CNY 1.34

-6What is not working for the Company

INTEREST(Q)

Highest at CNY 18.88 MM

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

Pre-Tax Profit

At CNY 209.28 MM has Grown at 564.09%

over average net sales of the previous four periods of CNY 31.51 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 181.06 MM has Grown at 570.24%

over average net sales of the previous four periods of CNY 27.01 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 1,942.3 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

At CNY 1,942.3 MM has Grown at 54.27%

over average net sales of the previous four periods of CNY 1,259.04 MM

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 228.82 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 11.78 % and Grown

In each period in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Net Profit

Highest at CNY 181.06 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 209.28 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

EPS

Highest at CNY 1.34

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 613.7 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 7.25 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -240.58% (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 Fuda Alloy Materials Co., Ltd.

Interest

At CNY 18.88 MM has Grown at 12.59%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 18.88 MM

in the last five periods and Increased by 12.59% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)