Jiangsu Guomao Reducer Co., Ltd. (603915) 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

Jiangsu Guomao Reducer Co., Ltd.

Why is Jiangsu Guomao Reducer Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.35% and Operating profit at -9.76% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 306.91 MM
OPERATING PROFIT(Q) Lowest at CNY 68.02 MM
OPERATING PROFIT MARGIN(Q) Lowest at 9.76 %

With ROE of 6.00%, it has a fair valuation with a 3.00 Price to Book Value

Over the past year, while the stock has generated a return of -8.28%, its profits have fallen by -40%
At the current price, the company has a high dividend yield of 1.4

Below par performance in long term as well as near term

Along with generating -8.28% 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 hold?

Overall Portfolio exposure to Jiangsu Guomao Reducer Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Jiangsu Guomao Reducer Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Jiangsu Guomao Reducer Co., Ltd.

7.92%

0.45

43.81%

China Shanghai Composite

20.96%

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)

5.35%

EBIT Growth (5y)

-9.76%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.60

Tax Ratio

12.93%

Dividend Payout Ratio

61.47%

Pledged Shares

Institutional Holding

ROCE (avg)

15.82%

ROE (avg)

11.94%

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

2.91

EV to EBIT

47.98

EV to EBITDA

29.38

EV to Capital Employed

4.09

EV to Sales

3.53

PEG Ratio

Dividend Yield

1.47%

ROCE (Latest)

8.52%

ROE (Latest)

6.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

4What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -39.87 %

RAW MATERIAL COST(Y)

Fallen by -7.24% (YoY

CASH AND EQV(HY)

Highest at CNY 4,310.61 MM

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 340.86 MM

ROCE(HY)

Lowest at 6.59%

OPERATING PROFIT(Q)

Lowest at CNY 46.98 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.15 %

Here's what is working for Jiangsu Guomao Reducer Co., Ltd.

Debt-Equity Ratio

Lowest at -39.87 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Cash and Eqv

Highest at CNY 4,310.61 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -7.24% (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 Jiangsu Guomao Reducer Co., Ltd.

Operating Cash Flow

Lowest at CNY 340.86 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)

Operating Profit

Lowest at CNY 46.98 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales