INZONE Group Co., Ltd. (600858) 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

INZONE Group Co., Ltd.

Why is INZONE Group Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -8.85% and Operating profit at 31.53% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 2.22% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -8.85% and Operating profit at 31.53% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

PRE-TAX PROFIT(Q) At CNY -7.62 MM has Fallen at -140.47%
NET PROFIT(Q) At CNY -16.02 MM has Fallen at -575.39%
OPERATING CASH FLOW(Y) Lowest at CNY 672.19 MM

With ROE of 2.55%, it has a fair valuation with a 1.05 Price to Book Value

Over the past year, while the stock has generated a return of 18.47%, its profits have fallen by -34%
At the current price, the company has a high dividend yield of 1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to INZONE Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is INZONE Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

INZONE Group Co., Ltd.

-23.91%

1.09

41.31%

China Shanghai Composite

19.22%

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)

-0.86%

EBIT Growth (5y)

28.55%

EBIT to Interest (avg)

1.23

Debt to EBITDA (avg)

2.01

Net Debt to Equity (avg)

0.53

Sales to Capital Employed (avg)

0.81

Tax Ratio

68.51%

Dividend Payout Ratio

30.73%

Pledged Shares

Institutional Holding

ROCE (avg)

8.56%

ROE (avg)

2.22%

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

0.92

EV to EBIT

8.67

EV to EBITDA

3.90

EV to Capital Employed

0.94

EV to Sales

0.62

PEG Ratio

4.26

Dividend Yield

0.71%

ROCE (Latest)

10.84%

ROE (Latest)

2.38%

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

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,246.51 MM

RAW MATERIAL COST(Y)

Fallen by -31.54% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 86.26 %

NET SALES(Q)

Highest at CNY 1,612.71 MM

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 290.14

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.06 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 13.27 times

OPERATING PROFIT(Q)

Lowest at CNY 157.77 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.78 %

Here's what is working for INZONE Group Co., Ltd.

Operating Cash Flow

Highest at CNY 1,246.51 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 1,612.71 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at 86.26 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -31.54% (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 INZONE Group Co., Ltd.

Interest Coverage Ratio

Lowest at 290.14

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 157.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 5.06 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 13.27 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio