Guangdong Decro Film New Materials 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

Guangdong Decro Film New Materials Co., Ltd.

Why is Guangdong Decro Film New Materials Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.60% and Operating profit at -8.53% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY 122.07 MM
INTEREST COVERAGE RATIO(Q) Lowest at 620.54
INTEREST(Q) Highest at CNY 3.17 MM

With ROE of 4.19%, it has a attractive valuation with a 0.38 Price to Book Value

Over the past year, while the stock has generated a return of 1.23%, its profits have fallen by -23%

Underperformed the market in the last 1 year

The stock has generated a return of 1.23% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.45%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong Decro Film New Materials Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Guangdong Decro Film New Materials Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong Decro Film New Materials Co., Ltd.

2.11%

-0.32

23.94%

China Shanghai Composite

15.45%

1.03

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.60%

EBIT Growth (5y)

-8.53%

EBIT to Interest (avg)

29.95

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

0.69

Tax Ratio

7.20%

Dividend Payout Ratio

93.14%

Pledged Shares

Institutional Holding

ROCE (avg)

6.00%

ROE (avg)

5.31%

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

0.38

EV to EBIT

12.13

EV to EBITDA

7.15

EV to Capital Employed

0.39

EV to Sales

0.50

PEG Ratio

Dividend Yield

ROCE (Latest)

3.21%

ROE (Latest)

4.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -10.73% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 9.42 times

PRE-TAX PROFIT(Q)

Highest at CNY 24.13 MM

NET PROFIT(Q)

Highest at CNY 22.29 MM

EPS(Q)

Highest at CNY 0.17

-14What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 122.07 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 620.54

INTEREST(Q)

Highest at CNY 3.17 MM

OPERATING PROFIT(Q)

Lowest at CNY 19.68 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.36 %

Here's what is working for Guangdong Decro Film New Materials Co., Ltd.

Pre-Tax Profit

Highest at CNY 24.13 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 22.29 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.17

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 9.42 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -10.73% (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 Guangdong Decro Film New Materials Co., Ltd.

Operating Cash Flow

Lowest at CNY 122.07 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

At CNY 3.17 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 620.54

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 3.17 MM

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

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 19.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales