Guangdong Shenling Environmental Systems 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 Shenling Environmental Systems Co., Ltd.

Why is Guangdong Shenling Environmental Systems Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 21.66% and Operating profit at 3.59% over the last 5 years

With ROE of 7.37%, it has a very expensive valuation with a 9.24 Price to Book Value

Over the past year, while the stock has generated a return of 319.82%, its profits have risen by 74%
At the current price, the company has a high dividend yield of 0.1

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 Industrial Manufacturing)

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

Is Guangdong Shenling Environmental Systems Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangdong Shenling Environmental Systems Co., Ltd.

316.53%

5.92

81.82%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.66%

EBIT Growth (5y)

3.59%

EBIT to Interest (avg)

10.44

Debt to EBITDA (avg)

2.41

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.80

Tax Ratio

2.42%

Dividend Payout Ratio

21.92%

Pledged Shares

Institutional Holding

ROCE (avg)

7.36%

ROE (avg)

7.27%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

125

Industry P/E

Price to Book Value

9.24

EV to EBIT

124.04

EV to EBITDA

86.30

EV to Capital Employed

6.92

EV to Sales

6.33

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

5.58%

ROE (Latest)

7.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

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

19What is working for the Company

NET PROFIT(HY)

At CNY 96.8 MM has Grown at 257.13%

NET SALES(HY)

At CNY 2,318.76 MM has Grown at 40.09%

OPERATING CASH FLOW(Y)

Highest at CNY 221.97 MM

ROCE(HY)

Highest at 7.14%

RAW MATERIAL COST(Y)

Fallen by -1.87% (YoY

CASH AND EQV(HY)

Highest at CNY 1,693.32 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 1.88 times

-15What is not working for the Company

INTEREST(HY)

At CNY 14.16 MM has Grown at 28.68%

DEBT-EQUITY RATIO (HY)

Highest at 40.57 %

PRE-TAX PROFIT(Q)

At CNY 31.86 MM has Fallen at -47.2%

NET PROFIT(Q)

At CNY 28.82 MM has Fallen at -46.77%

NET SALES(Q)

Lowest at CNY 617.16 MM

Here's what is working for Guangdong Shenling Environmental Systems Co., Ltd.

Operating Cash Flow

Highest at CNY 221.97 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 1,693.32 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 1.88 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -1.87% (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 Shenling Environmental Systems Co., Ltd.

Interest

At CNY 14.16 MM has Grown at 28.68%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 31.86 MM has Fallen at -47.2%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 28.82 MM has Fallen at -46.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 40.57 % and Grown

In each half year 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

Net Sales

Lowest at CNY 617.16 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)