GSP Automotive Group Wenzhou Co., Ltd. (605088) 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

GSP Automotive Group Wenzhou Co., Ltd.

Why is GSP Automotive Group Wenzhou Co., Ltd. ?

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

ROCE(HY) Lowest at 11.73%
RAW MATERIAL COST(Y) Grown by 5.06% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 3.74 times

With ROE of 11.51%, it has a fair valuation with a 2.94 Price to Book Value

Over the past year, while the stock has generated a return of -3.09%, its profits have risen by 3.8% ; the PEG ratio of the company is 6.7
At the current price, the company has a high dividend yield of 1.3

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.09% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to GSP Automotive Group Wenzhou Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is GSP Automotive Group Wenzhou Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

GSP Automotive Group Wenzhou Co., Ltd.

-24.61%

1.12

46.28%

China Shanghai Composite

16.78%

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)

17.59%

EBIT Growth (5y)

33.45%

EBIT to Interest (avg)

21.05

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.03

Sales to Capital Employed (avg)

0.87

Tax Ratio

13.32%

Dividend Payout Ratio

38.46%

Pledged Shares

Institutional Holding

ROCE (avg)

14.95%

ROE (avg)

10.96%

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

0.83

EV to EBIT

5.39

EV to EBITDA

4.40

EV to Capital Employed

0.82

EV to Sales

0.49

PEG Ratio

Dividend Yield

8.12%

ROCE (Latest)

15.20%

ROE (Latest)

9.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at CNY 909.54 MM

NET SALES(HY)

At CNY 2,434.64 MM has Grown at 20.26%

INTEREST COVERAGE RATIO(Q)

Highest at 1,316.3

RAW MATERIAL COST(Y)

Fallen by -11.49% (YoY

CASH AND EQV(HY)

Highest at CNY 5,308.67 MM

-5What is not working for the Company

INTEREST(HY)

At CNY 27.76 MM has Grown at 9.79%

ROCE(HY)

Lowest at 10.55%

Here's what is working for GSP Automotive Group Wenzhou Co., Ltd.

Operating Cash Flow

Highest at CNY 909.54 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Highest at 1,316.3

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

At CNY 2,434.64 MM has Grown at 20.26%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 5,308.67 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -11.49% (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 GSP Automotive Group Wenzhou Co., Ltd.

Interest

At CNY 27.76 MM has Grown at 9.79%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)