Hubei W-Olf Photoelectric Technology Co., Ltd. (002962) 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

Hubei W-Olf Photoelectric Technology Co., Ltd.

Why is Hubei W-Olf Photoelectric Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.41%

The company has been able to generate a Return on Capital Employed (avg) of 6.41% 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 13.39% and Operating profit at -141.17% over the last 5 years

With a fall in Net Sales of -3.33%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 2 consecutive quarters
INTEREST(HY) At CNY 1.09 MM has Grown at 109.93%
OPERATING CASH FLOW(Y) Lowest at CNY 30.94 MM
ROCE(HY) Lowest at 2.07%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.17% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.40% 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 Other Electrical Equipment)

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

Is Hubei W-Olf Photoelectric Technology Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hubei W-Olf Photoelectric Technology Co., Ltd.

-14.16%

-0.11

28.02%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.39%

EBIT Growth (5y)

-141.17%

EBIT to Interest (avg)

48.24

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

0.53

Tax Ratio

6.39%

Dividend Payout Ratio

89.45%

Pledged Shares

Institutional Holding

ROCE (avg)

6.41%

ROE (avg)

4.80%

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

2.49

EV to EBIT

516.30

EV to EBITDA

43.86

EV to Capital Employed

3.94

EV to Sales

3.14

PEG Ratio

Dividend Yield

1.34%

ROCE (Latest)

0.76%

ROE (Latest)

2.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

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

1What is working for the Company

NET SALES(Q)

At CNY 328.28 MM has Grown at 16.75%

-29What is not working for the Company

INTEREST(HY)

At CNY 1.09 MM has Grown at 109.93%

OPERATING CASH FLOW(Y)

Lowest at CNY 30.94 MM

ROCE(HY)

Lowest at 2.07%

DEBT-EQUITY RATIO (HY)

Highest at -50.08 %

INTEREST COVERAGE RATIO(Q)

Lowest at 540.62

RAW MATERIAL COST(Y)

Grown by 21.12% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.27 times

OPERATING PROFIT MARGIN(Q)

Lowest at 1.29 %

NET PROFIT(Q)

At CNY 8.78 MM has Fallen at -31.88%

Here's what is working for Hubei W-Olf Photoelectric Technology Co., Ltd.

Net Sales

At CNY 328.28 MM has Grown at 16.75%

over average net sales of the previous four periods of CNY 281.17 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Hubei W-Olf Photoelectric Technology Co., Ltd.

Interest

At CNY 1.09 MM has Grown at 109.93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 30.94 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest Coverage Ratio

Lowest at 540.62

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -50.08 % and Grown

In each half year 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

Operating Profit Margin

Lowest at 1.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 8.78 MM has Fallen at -31.88%

over average net sales of the previous four periods of CNY 12.88 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 6.27 times

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 21.12% (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