Guangxi Liugong Machinery Co., Ltd. (000528) 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

Guangxi Liugong Machinery Co., Ltd.

Why is Guangxi Liugong Machinery Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 5.36% and Operating profit at 3.20% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.44% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.36% and Operating profit at 3.20% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 639.52 MM
DEBT-EQUITY RATIO (HY) Highest at 52.99 %
DEBTORS TURNOVER RATIO(HY) Lowest at 2.29 times

With ROE of 7.35%, it has a fair valuation with a 0.64 Price to Book Value

Over the past year, while the stock has generated a return of -20.48%, its profits have fallen by -7%
At the current price, the company has a high dividend yield of 6.9

Below par performance in long term as well as near term

Along with generating -20.48% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guangxi Liugong Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is Guangxi Liugong Machinery Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangxi Liugong Machinery Co., Ltd.

-20.48%

-1.02

33.10%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.36%

EBIT Growth (5y)

3.20%

EBIT to Interest (avg)

4.54

Debt to EBITDA (avg)

5.30

Net Debt to Equity (avg)

0.44

Sales to Capital Employed (avg)

0.89

Tax Ratio

16.58%

Dividend Payout Ratio

40.73%

Pledged Shares

Institutional Holding

ROCE (avg)

4.79%

ROE (avg)

7.44%

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

0.64

EV to EBIT

12.40

EV to EBITDA

9.36

EV to Capital Employed

0.76

EV to Sales

0.65

PEG Ratio

Dividend Yield

6.95%

ROCE (Latest)

6.14%

ROE (Latest)

7.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

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

6What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,217.98

RAW MATERIAL COST(Y)

Fallen by -5.56% (YoY

NET SALES(Q)

Highest at CNY 10,060.8 MM

PRE-TAX PROFIT(Q)

At CNY 690.3 MM has Grown at 69.59%

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 639.52 MM

DEBT-EQUITY RATIO (HY)

Highest at 52.99 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.29 times

Here's what is working for Guangxi Liugong Machinery Co., Ltd.

Interest Coverage Ratio

Highest at 1,217.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CNY 10,060.8 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 10,060.8 MM has Grown at 21.42%

over average net sales of the previous four periods of CNY 8,285.97 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 690.3 MM has Grown at 69.59%

over average net sales of the previous four periods of CNY 407.04 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by -5.56% (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 Guangxi Liugong Machinery Co., Ltd.

Operating Cash Flow

Lowest at CNY 639.52 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 52.99 %

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

Debtors Turnover Ratio

Lowest at 2.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio