Hangzhou Iron & Steel Co., Ltd. (600126) 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

Hangzhou Iron & Steel Co., Ltd.

Why is Hangzhou Iron & Steel Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.34%

The company has been able to generate a Return on Capital Employed (avg) of 4.34% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 15.30% and Operating profit at -191.76% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

INTEREST(HY) At CNY 29.62 MM has Grown at 52.99%

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 -22.88%, its profits have fallen by -1972.4%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.88% returns

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 Ferrous Metals)

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

Is Hangzhou Iron & Steel Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hangzhou Iron & Steel Co., Ltd.

-25.77%

2.06

51.27%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.26%

EBIT Growth (5y)

-171.00%

EBIT to Interest (avg)

6.52

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

2.29

Tax Ratio

17.95%

Dividend Payout Ratio

69.44%

Pledged Shares

Institutional Holding

ROCE (avg)

4.34%

ROE (avg)

3.21%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

364

Industry P/E

Price to Book Value

1.19

EV to EBIT

-89.89

EV to EBITDA

29.08

EV to Capital Employed

1.21

EV to Sales

0.46

PEG Ratio

3.34

Dividend Yield

ROCE (Latest)

-1.35%

ROE (Latest)

0.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,474.89 MM

PRE-TAX PROFIT(Q)

At CNY 25.54 MM has Grown at 135.76%

RAW MATERIAL COST(Y)

Fallen by -1,258.82% (YoY

NET PROFIT(Q)

At CNY 8.6 MM has Grown at 57.73%

-14What is not working for the Company

NET SALES(Q)

At CNY 7,692.85 MM has Fallen at -41.16%

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.21 times

OPERATING PROFIT(Q)

Lowest at CNY -28.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.37 %

Here's what is working for Hangzhou Iron & Steel Co., Ltd.

Operating Cash Flow

Highest at CNY 2,474.89 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 25.54 MM has Grown at 135.76%

over average net sales of the previous four periods of CNY 10.83 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 8.6 MM has Grown at 57.73%

over average net sales of the previous four periods of CNY 5.45 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -1,258.82% (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 Hangzhou Iron & Steel Co., Ltd.

Net Sales

At CNY 7,692.85 MM has Fallen at -41.16%

over average net sales of the previous four periods of CNY 13,073.37 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -28.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 9.21 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 2.06 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income