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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guizhou Tyre Co., Ltd.

Why is Guizhou Tyre Co., Ltd. ?

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

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 -10.07%, 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

Below par performance in long term as well as near term

Along with generating -10.07% 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 Auto Components & Equipments)

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

Is Guizhou Tyre Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guizhou Tyre Co., Ltd.

-10.07%

-1.08

23.07%

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)

8.66%

EBIT Growth (5y)

2.67%

EBIT to Interest (avg)

5.09

Debt to EBITDA (avg)

3.58

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

0.69

Tax Ratio

12.02%

Dividend Payout Ratio

32.50%

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

0.75

EV to EBIT

11.88

EV to EBITDA

7.87

EV to Capital Employed

0.82

EV to Sales

0.96

PEG Ratio

0.19

Dividend Yield

2.83%

ROCE (Latest)

6.92%

ROE (Latest)

7.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

8What is working for the Company

NET PROFIT(HY)

At CNY 335.02 MM has Grown at 176.63%

RAW MATERIAL COST(Y)

Fallen by -51.56% (YoY

-5What is not working for the Company

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

OPERATING PROFIT MARGIN(Q)

Lowest at 8.61 %

Here's what is working for Guizhou Tyre Co., Ltd.

Net Profit

At CNY 335.02 MM has Grown at 176.63%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -51.56% (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 Guizhou Tyre Co., Ltd.

Interest Coverage Ratio

Lowest at 784.33

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 231.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 4.85 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio