Guangdong TCL Smart Home Appliances Co., Ltd. (002668) 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 TCL Smart Home Appliances Co., Ltd.

Why is Guangdong TCL Smart Home Appliances Co., Ltd. ?

The company has declared positive results in Jan 70 after 2 consecutive negative quarters

OPERATING CASH FLOW(Y) Highest at CNY 2,900.08 MM
INTEREST COVERAGE RATIO(Q) Highest at 12,193.17
RAW MATERIAL COST(Y) Fallen by -14.39% (YoY)

With ROE of 66.44%, it has a attractive valuation with a 3.47 Price to Book Value

Over the past year, while the stock has generated a return of -20.35%, its profits have risen by 14.7% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 17.07% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -20.35% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangdong TCL Smart Home Appliances Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Guangdong TCL Smart Home Appliances Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong TCL Smart Home Appliances Co., Ltd.

-20.35%

-0.17

27.90%

China Shanghai Composite

16.67%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.69%

EBIT Growth (5y)

26.78%

EBIT to Interest (avg)

20.60

Debt to EBITDA (avg)

0.21

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

2.57

Tax Ratio

13.47%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

175.28%

ROE (avg)

86.85%

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

3.47

EV to EBIT

4.40

EV to EBITDA

3.73

EV to Capital Employed

5.21

EV to Sales

0.50

PEG Ratio

0.36

Dividend Yield

ROCE (Latest)

118.55%

ROE (Latest)

66.44%

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,900.08 MM

INTEREST COVERAGE RATIO(Q)

Highest at 12,193.17

RAW MATERIAL COST(Y)

Fallen by -14.39% (YoY

CASH AND EQV(HY)

Highest at CNY 11,365.07 MM

DEBT-EQUITY RATIO (HY)

Lowest at -25.72 %

OPERATING PROFIT(Q)

Highest at CNY 756.1 MM

OPERATING PROFIT MARGIN(Q)

Highest at 15.53 %

PRE-TAX PROFIT(Q)

Highest at CNY 775.54 MM

EPS(Q)

Highest at CNY 0.31

-3What is not working for the Company

ROCE(HY)

Lowest at 41.64%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.96 times

Here's what is working for Guangdong TCL Smart Home Appliances Co., Ltd.

Interest Coverage Ratio

Highest at 12,193.17

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at CNY 2,900.08 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Operating Profit

Highest at CNY 756.1 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 15.53 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 775.54 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

EPS

Highest at CNY 0.31

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 11,365.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -25.72 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -14.39% (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 TCL Smart Home Appliances Co., Ltd.

Debtors Turnover Ratio

Lowest at 3.96 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio