GAD Environmental Technology Co., Ltd. () 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

GAD Environmental Technology Co., Ltd.

Why is GAD Environmental Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.63%

The company has been able to generate a Return on Capital Employed (avg) of 4.63% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -6.54% and Operating profit at -177.74% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY -20.76 MM
ROCE(HY) Lowest at -2.16%
RAW MATERIAL COST(Y) Grown by 80.84% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 114.65%, its profits have fallen by -81.7%
At the current price, the company has a high dividend yield of 0.2

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 Miscellaneous)

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

Is GAD Environmental Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

GAD Environmental Technology Co., Ltd.

114.65%

3.07

57.79%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.54%

EBIT Growth (5y)

-177.74%

EBIT to Interest (avg)

34.41

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

0.70

Tax Ratio

12.57%

Dividend Payout Ratio

92.31%

Pledged Shares

Institutional Holding

ROCE (avg)

4.63%

ROE (avg)

4.12%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

446

Industry P/E

Price to Book Value

2.25

EV to EBIT

474.54

EV to EBITDA

44.19

EV to Capital Employed

2.56

EV to Sales

3.20

PEG Ratio

Dividend Yield

0.25%

ROCE (Latest)

0.54%

ROE (Latest)

0.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-37What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -20.76 MM

ROCE(HY)

Lowest at -2.16%

RAW MATERIAL COST(Y)

Grown by 80.84% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -17.1 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.58 times

NET SALES(Q)

Lowest at CNY 84.55 MM

OPERATING PROFIT(Q)

Lowest at CNY -32.95 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -38.97 %

PRE-TAX PROFIT(Q)

Lowest at CNY -30.29 MM

NET PROFIT(Q)

Lowest at CNY -32.15 MM

EPS(Q)

Lowest at CNY -0.27

Here's what is not working for GAD Environmental Technology Co., Ltd.

Net Sales

At CNY 84.55 MM has Fallen at -23.56%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -30.29 MM has Fallen at -912.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -32.15 MM has Fallen at -2,860.73%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -20.76 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)

Net Sales

Lowest at CNY 84.55 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -32.95 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -38.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -30.29 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 -32.15 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.27

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -17.1 %

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 0.58 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 80.84% (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