Guangdong Enpack Packaging Co., Ltd. (002846) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guangdong Enpack Packaging Co., Ltd.

Why is Guangdong Enpack Packaging Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.87%

The company has been able to generate a Return on Capital Employed (avg) of 1.87% 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 13.24% and Operating profit at -27.47% 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 2.52% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 13.24% and Operating profit at -27.47% over the last 5 years

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

NET PROFIT(HY) At CNY -30.7 MM has Grown at -364.05%
INTEREST(HY) At CNY 24.33 MM has Grown at 25.28%
OPERATING CASH FLOW(Y) Lowest at CNY 95.92 MM

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 121.50%, its profits have fallen by -268%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong Enpack Packaging Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Guangdong Enpack Packaging Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Enpack Packaging Co., Ltd.

63.05%

2.27

65.63%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.24%

EBIT Growth (5y)

-27.47%

EBIT to Interest (avg)

1.26

Debt to EBITDA (avg)

9.64

Net Debt to Equity (avg)

0.94

Sales to Capital Employed (avg)

0.71

Tax Ratio

99.24%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.87%

ROE (avg)

2.52%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.02

EV to EBIT

260.53

EV to EBITDA

37.89

EV to Capital Employed

2.00

EV to Sales

2.67

PEG Ratio

Dividend Yield

ROCE (Latest)

0.77%

ROE (Latest)

-1.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

10What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -16.17% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.42%

PRE-TAX PROFIT(Q)

Highest at CNY 15.04 MM

NET PROFIT(Q)

Highest at CNY 11.03 MM

EPS(Q)

Highest at CNY 0.03

-19What is not working for the Company

NET PROFIT(HY)

At CNY -30.7 MM has Grown at -364.05%

INTEREST(HY)

At CNY 24.33 MM has Grown at 25.28%

OPERATING CASH FLOW(Y)

Lowest at CNY 95.92 MM

Here's what is working for Guangdong Enpack Packaging Co., Ltd.

Pre-Tax Profit

At CNY 15.04 MM has Grown at 298.39%

over average net sales of the previous four periods of CNY -7.58 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 11.03 MM has Grown at 211.7%

over average net sales of the previous four periods of CNY -9.88 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 15.04 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 11.03 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Highest at 5.42%

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 -16.17% (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 Enpack Packaging Co., Ltd.

Interest

At CNY 24.33 MM has Grown at 25.28%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 95.92 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)