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

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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 11.54% and Operating profit at -44.49% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 27.22 MM
INTEREST(9M) At CNY 0.97 MM has Grown at 10.53%
NET PROFIT(HY) At CNY 27.54 MM has Grown at -32.51%

With ROE of 2.66%, it has a fair valuation with a 1.71 Price to Book Value

Over the past year, while the stock has generated a return of -7.46%, its profits have fallen by -37.8%
At the current price, the company has a high dividend yield of 1.9

Below par performance in long term as well as near term

Along with generating -7.46% 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 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?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hubei W-Olf Photoelectric Technology Co., Ltd.

-13.98%

0.09

37.17%

China Shanghai Composite

14.77%

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)

11.54%

EBIT Growth (5y)

-44.49%

EBIT to Interest (avg)

48.24

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

0.52

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

1.71

EV to EBIT

315.67

EV to EBITDA

26.82

EV to Capital Employed

2.41

EV to Sales

1.92

PEG Ratio

Dividend Yield

1.94%

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

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bullish

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

2What is working for the Company

NET SALES(Q)

Highest at CNY 336.78 MM

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 27.22 MM

INTEREST(9M)

At CNY 0.97 MM has Grown at 10.53%

NET PROFIT(HY)

At CNY 27.54 MM has Grown at -32.51%

ROCE(HY)

Lowest at 2.91%

RAW MATERIAL COST(Y)

Grown by 18.05% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -49.41 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.97%

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

Net Sales

Highest at CNY 336.78 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 336.78 MM has Grown at 24.23%

over average net sales of the previous four periods of CNY 271.1 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.

Operating Cash Flow

Lowest at CNY 27.22 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)

Net Profit

At CNY 27.54 MM has Grown at -32.51%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Interest

At CNY 0.97 MM has Grown at 10.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -49.41 %

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

Debtors Turnover Ratio

Lowest at 4.97%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 18.05% (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