Guizhou Tyre Co., Ltd. (000589) 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 Tyre Co., Ltd.

Why is Guizhou Tyre 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 11.24% and Operating profit at 5.39% 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 10.24% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(Q) At CNY 66.12 MM has Fallen at -57.03%
ROCE(HY) Lowest at 5.78%
INTEREST COVERAGE RATIO(Q) Lowest at 343.79

With ROE of 5.07%, it has a expensive valuation with a 0.79 Price to Book Value

Over the past year, while the stock has generated a return of 0.58%, its profits have fallen by -52.1%
At the current price, the company has a high dividend yield of 2.2

Underperformed the market in the last 1 year

The stock has generated a return of 0.58% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Guizhou Tyre Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

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

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

Is Guizhou Tyre Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guizhou Tyre Co., Ltd.

-100.0%

-0.25

20.57%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.24%

EBIT Growth (5y)

5.39%

EBIT to Interest (avg)

5.09

Debt to EBITDA (avg)

3.58

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

0.67

Tax Ratio

12.02%

Dividend Payout Ratio

29.55%

Pledged Shares

Institutional Holding

ROCE (avg)

6.06%

ROE (avg)

10.24%

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

0.79

EV to EBIT

22.07

EV to EBITDA

10.00

EV to Capital Employed

0.85

EV to Sales

1.00

PEG Ratio

Dividend Yield

2.16%

ROCE (Latest)

3.86%

ROE (Latest)

5.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-25What is not working for the Company

NET PROFIT(Q)

At CNY 66.12 MM has Fallen at -57.03%

ROCE(HY)

Lowest at 5.78%

INTEREST COVERAGE RATIO(Q)

Lowest at 343.79

OPERATING PROFIT(Q)

Lowest at CNY 103.61 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.12 %

PRE-TAX PROFIT(Q)

Lowest at CNY 81.71 MM

RAW MATERIAL COST(Y)

Grown by 29.31% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.91%

Here's what is not working for Guizhou Tyre Co., Ltd.

Net Profit

At CNY 66.12 MM has Fallen at -57.03%

over average net sales of the previous four periods of CNY 153.87 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 343.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 103.61 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.12 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 81.71 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 81.71 MM has Fallen at -52.71%

over average net sales of the previous four periods of CNY 172.79 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 4.91%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 29.31% (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