Fujian Zhangzhou Development Co. Ltd. (000753) 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

Fujian Zhangzhou Development Co. Ltd.

Why is Fujian Zhangzhou Development Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 1.61%

The company has been able to generate a Return on Capital Employed (avg) of 1.61% signifying low profitability per unit of total capital (equity and debt)

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 1.79% and Operating profit at -153.65% 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 4.22% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.79% and Operating profit at -153.65% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET SALES(Q) At CNY 578.71 MM has Fallen at -27.01%
DEBT-EQUITY RATIO (HY) Highest at 171.64 %
DEBTORS TURNOVER RATIO(HY) Lowest at 1.22 times

With ROE of 2.24%, it has a very expensive valuation with a 2.11 Price to Book Value

Over the past year, while the stock has generated a return of 20.76%, its profits have fallen by -23%
At the current price, the company has a high dividend yield of 0.3

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 Retailing)

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

Is Fujian Zhangzhou Development Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Fujian Zhangzhou Development Co. Ltd.

41.09%

2.01

57.90%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.79%

EBIT Growth (5y)

-153.65%

EBIT to Interest (avg)

1.04

Debt to EBITDA (avg)

24.78

Net Debt to Equity (avg)

1.62

Sales to Capital Employed (avg)

0.47

Tax Ratio

24.26%

Dividend Payout Ratio

37.11%

Pledged Shares

Institutional Holding

ROCE (avg)

1.61%

ROE (avg)

4.22%

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

2.11

EV to EBIT

-590.49

EV to EBITDA

74.28

EV to Capital Employed

1.51

EV to Sales

3.33

PEG Ratio

Dividend Yield

0.28%

ROCE (Latest)

-0.26%

ROE (Latest)

2.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -43.39% (YoY

-15What is not working for the Company

NET SALES(Q)

At CNY 578.71 MM has Fallen at -27.01%

DEBT-EQUITY RATIO (HY)

Highest at 171.64 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.22 times

INTEREST COVERAGE RATIO(Q)

Lowest at 25.98

OPERATING PROFIT(Q)

Lowest at CNY 8.65 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.49 %

Here's what is working for Fujian Zhangzhou Development Co. Ltd.

Raw Material Cost

Fallen by -43.39% (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 Fujian Zhangzhou Development Co. Ltd.

Net Sales

At CNY 578.71 MM has Fallen at -27.01%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 25.98

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 171.64 % 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

Debtors Turnover Ratio

Lowest at 1.22 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 8.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales