Guangxi Wuzhou Communications Co., Ltd. (600368) 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

Guangxi Wuzhou Communications Co., Ltd.

Why is Guangxi Wuzhou Communications Co., Ltd. ?

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 0.37% and Operating profit at 13.53% 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 11.64% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 0.37% and Operating profit at 13.53% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at CNY 1,076.55 MM
ROCE(HY) Lowest at 9.8%
RAW MATERIAL COST(Y) Grown by 27.86% (YoY)

With ROE of 9.43%, it has a very expensive valuation with a 0.98 Price to Book Value

Over the past year, while the stock has generated a return of 0.76%, its profits have fallen by -0%
At the current price, the company has a high dividend yield of 2.4

Underperformed the market in the last 1 year

The stock has generated a return of 0.76% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%

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 Transport Services)

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

Is Guangxi Wuzhou Communications Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangxi Wuzhou Communications Co., Ltd.

0.76%

0.18

39.43%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.37%

EBIT Growth (5y)

13.53%

EBIT to Interest (avg)

4.90

Debt to EBITDA (avg)

2.93

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

0.19

Tax Ratio

16.93%

Dividend Payout Ratio

30.20%

Pledged Shares

Institutional Holding

ROCE (avg)

7.68%

ROE (avg)

11.64%

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

0.98

EV to EBIT

12.81

EV to EBITDA

8.88

EV to Capital Employed

0.98

EV to Sales

4.68

PEG Ratio

Dividend Yield

2.37%

ROCE (Latest)

7.69%

ROE (Latest)

9.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.14%

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,076.55 MM

ROCE(HY)

Lowest at 9.8%

RAW MATERIAL COST(Y)

Grown by 27.86% (YoY

NET SALES(Q)

At CNY 400.55 MM has Fallen at -11.48%

OPERATING PROFIT(Q)

Lowest at CNY 198.38 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 103.61 MM

NET PROFIT(Q)

Lowest at CNY 120.44 MM

EPS(Q)

Lowest at CNY 0.07

Here's what is working for Guangxi Wuzhou Communications Co., Ltd.

Inventory Turnover Ratio

Highest at 3.14%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Guangxi Wuzhou Communications Co., Ltd.

Operating Cash Flow

Lowest at CNY 1,076.55 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)

Net Sales

At CNY 400.55 MM has Fallen at -11.48%

over average net sales of the previous four periods of CNY 452.51 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 198.38 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 103.61 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 103.61 MM has Fallen at -32.59%

over average net sales of the previous four periods of CNY 153.7 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 120.44 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

At CNY 120.44 MM has Fallen at -29.24%

over average net sales of the previous four periods of CNY 170.2 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 27.86% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales