Jiangsu Jiangnan Water Co., Ltd. (601199) 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 Jiangnan Water Co., Ltd.

Why is Jiangsu Jiangnan Water Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.09% and Operating profit at 2.51% over the last 5 years

INTEREST COVERAGE RATIO(Q) Lowest at 978.86
DEBTORS TURNOVER RATIO(HY) Lowest at 1.74 times
INTEREST(Q) Highest at CNY 8.89 MM

With ROE of 8.78%, it has a very attractive valuation with a 1.18 Price to Book Value

Over the past year, while the stock has generated a return of 17.64%, its profits have risen by 8.1% ; the PEG ratio of the company is 1.7
At the current price, the company has a high dividend yield of 2.3

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 Utilities)

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

Is Jiangsu Jiangnan Water Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu Jiangnan Water Co., Ltd.

10.69%

0.64

22.58%

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)

6.99%

EBIT Growth (5y)

-4.52%

EBIT to Interest (avg)

12.50

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.29

Tax Ratio

25.57%

Dividend Payout Ratio

30.36%

Pledged Shares

Institutional Holding

ROCE (avg)

10.65%

ROE (avg)

8.61%

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

1.12

EV to EBIT

20.31

EV to EBITDA

11.63

EV to Capital Employed

1.13

EV to Sales

3.39

PEG Ratio

Dividend Yield

2.49%

ROCE (Latest)

5.55%

ROE (Latest)

7.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

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

3What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -7.02 %

RAW MATERIAL COST(Y)

Fallen by -23.78% (YoY

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 332.95 MM

ROCE(HY)

Lowest at 7.86%

NET SALES(Q)

At CNY 302.31 MM has Fallen at -15.38%

INTEREST(Q)

At CNY 5.77 MM has Grown at 131.69%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,192.14

OPERATING PROFIT MARGIN(Q)

Lowest at 22.75 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 14.06 times

OPERATING PROFIT(Q)

Lowest at CNY 68.77 MM

Here's what is working for Jiangsu Jiangnan Water Co., Ltd.

Debt-Equity Ratio

Lowest at -7.02 % 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

Raw Material Cost

Fallen by -23.78% (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 Jiangnan Water Co., Ltd.

Operating Cash Flow

Lowest at CNY 332.95 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 Sales

At CNY 302.31 MM has Fallen at -15.38%

over average net sales of the previous four periods of CNY 357.27 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 5.77 MM has Grown at 131.69%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,192.14

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 22.75 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 68.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 14.06 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio