ScoreWhy is Guizhou Tyre Co., Ltd. ?
1
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 8.66% and Operating profit at 2.67% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 10.24% signifying low profitability per unit of shareholders funds
2
Flat results in Mar 26
- INTEREST COVERAGE RATIO(Q) Lowest at 784.33
- INVENTORY TURNOVER RATIO(HY) Lowest at 4.85 times
- OPERATING PROFIT(Q) Lowest at CNY 231.48 MM
3
With ROE of 7.86%, it has a expensive valuation with a 0.75 Price to Book Value
- Over the past year, while the stock has generated a return of -9.91%, its profits have risen by 50.8% ; the PEG ratio of the company is 0.2
- At the current price, the company has a high dividend yield of 2.8
4
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -9.91% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- 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.
-6.88%
-1.02
23.23%
China Shanghai Composite
0.33%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.66%
EBIT Growth (5y)
2.67%
EBIT to Interest (avg)
5.05
Debt to EBITDA (avg)
3.68
Net Debt to Equity (avg)
0.41
Sales to Capital Employed (avg)
0.69
Tax Ratio
11.76%
Dividend Payout Ratio
32.50%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
5.43%
ROE (avg)
10.24%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.70
EV to EBIT
11.33
EV to EBITDA
7.51
EV to Capital Employed
0.78
EV to Sales
0.92
PEG Ratio
0.17
Dividend Yield
4.67%
ROCE (Latest)
6.92%
ROE (Latest)
7.86%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Mildly Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
NET PROFIT(HY)
At CNY 362.36 MM has Grown at 45.79%
RAW MATERIAL COST(Y)
Fallen by -10.36% (YoY
NET SALES(Q)
Highest at CNY 3,051.72 MM
-1What is not working for the Company
DEBT-EQUITY RATIO
(HY)
Highest at 44.21 %
Here's what is working for Guizhou Tyre Co., Ltd.
Net Profit
At CNY 362.36 MM has Grown at 45.79%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Net Sales
Highest at CNY 3,051.72 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Raw Material Cost
Fallen by -10.36% (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 Guizhou Tyre Co., Ltd.
Debt-Equity Ratio
Highest at 44.21 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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