GRIPM Advanced Materials Co., Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

GRIPM Advanced Materials Co., Ltd.

Why is GRIPM Advanced Materials Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 11.53% and Operating profit at -5.36% over the last 5 years

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

INTEREST(HY) At CNY 4.11 MM has Grown at 41.46%
OPERATING CASH FLOW(Y) Lowest at CNY -48.31 MM
INTEREST COVERAGE RATIO(Q) Lowest at 662.87

With ROE of 5.55%, it has a fair valuation with a 4.41 Price to Book Value

Over the past year, while the stock has generated a return of 56.73%, its profits have risen by 18.1%

Market Beating Performance

The stock has generated a return of 56.73% in the last 1 year, much higher than market (China Shanghai Composite) returns of 14.61%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GRIPM Advanced 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 GRIPM Advanced Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

GRIPM Advanced Materials Co., Ltd.

52.64%

2.42

39.80%

China Shanghai Composite

15.44%

1.01

14.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.53%

EBIT Growth (5y)

-5.36%

EBIT to Interest (avg)

25.11

Debt to EBITDA (avg)

0.14

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

2.14

Tax Ratio

5.11%

Dividend Payout Ratio

34.91%

Pledged Shares

Institutional Holding

ROCE (avg)

6.44%

ROE (avg)

6.82%

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

4.41

EV to EBIT

113.61

EV to EBITDA

60.00

EV to Capital Employed

4.29

EV to Sales

1.57

PEG Ratio

Dividend Yield

ROCE (Latest)

3.78%

ROE (Latest)

5.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

8What is working for the Company

NET SALES(HY)

At CNY 1,661.23 MM has Grown at 24.67%

ROCE(HY)

Highest at 5.01%

INVENTORY TURNOVER RATIO(HY)

Highest at 11.22%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.44%

-18What is not working for the Company

INTEREST(HY)

At CNY 4.11 MM has Grown at 41.46%

OPERATING CASH FLOW(Y)

Lowest at CNY -48.31 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 662.87

RAW MATERIAL COST(Y)

Grown by 13.02% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 5.41 %

OPERATING PROFIT(Q)

Lowest at CNY 13.34 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.68 %

NET PROFIT(Q)

At CNY 10.27 MM has Fallen at -31.07%

Here's what is working for GRIPM Advanced Materials Co., Ltd.

Net Sales

At CNY 1,661.23 MM has Grown at 24.67%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 11.22%

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 5.44%

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 GRIPM Advanced Materials Co., Ltd.

Interest

At CNY 4.11 MM has Grown at 41.46%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -48.31 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 662.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 13.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.68 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 10.27 MM has Fallen at -31.07%

over average net sales of the previous four periods of CNY 14.91 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 5.41 %

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

Raw Material Cost

Grown by 13.02% (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