Guizhou Gas Group Corp., Ltd. (600903) 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

Guizhou Gas Group Corp., Ltd.

Why is Guizhou Gas Group Corp., 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 11.46% and Operating profit at -5.06% 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 5.13% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.46% and Operating profit at -5.06% over the last 5 years

With a fall in Net Sales of -6.61%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY 472.71 MM
INTEREST(Q) At CNY 47.68 MM has Grown at 18.24%
RAW MATERIAL COST(Y) Grown by 14.24% (YoY)

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 -18.43%, its profits have fallen by -73.3%
At the current price, the company has a high dividend yield of 0.7

Below par performance in long term as well as near term

Along with generating -18.43% 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 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 Gas)

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

Is Guizhou Gas Group Corp., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guizhou Gas Group Corp., Ltd.

-15.83%

0.02

25.62%

China Shanghai Composite

15.19%

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)

11.46%

EBIT Growth (5y)

-5.06%

EBIT to Interest (avg)

1.87

Debt to EBITDA (avg)

6.24

Net Debt to Equity (avg)

1.60

Sales to Capital Employed (avg)

0.76

Tax Ratio

53.26%

Dividend Payout Ratio

66.29%

Pledged Shares

Institutional Holding

ROCE (avg)

5.01%

ROE (avg)

5.13%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

182

Industry P/E

Price to Book Value

2.42

EV to EBIT

48.40

EV to EBITDA

20.35

EV to Capital Employed

1.56

EV to Sales

1.87

PEG Ratio

Dividend Yield

0.74%

ROCE (Latest)

3.22%

ROE (Latest)

1.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly 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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 13.96%

NET SALES(Q)

Highest at CNY 2,281.06 MM

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 472.71 MM

INTEREST(Q)

At CNY 47.68 MM has Grown at 18.24%

RAW MATERIAL COST(Y)

Grown by 14.24% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 161.49 %

NET PROFIT(Q)

Fallen at -29.74%

Here's what is working for Guizhou Gas Group Corp., Ltd.

Net Sales

Highest at CNY 2,281.06 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 13.96%

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 Guizhou Gas Group Corp., Ltd.

Interest

At CNY 47.68 MM has Grown at 18.24%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 472.71 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Profit

Fallen at -29.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 161.49 %

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

Raw Material Cost

Grown by 14.24% (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