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

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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 9.73% and Operating profit at 2.51% over the last 5 years

NET SALES(Q) At CNY 280.49 MM has Fallen at -25.83%
OPERATING CASH FLOW(Y) Lowest at CNY 367.41 MM
INTEREST(Q) At CNY 5.64 MM has Grown at 103.07%

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 -1.89%, 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

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.89% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Jiangsu Jiangnan Water Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Utilities should be less than 30%

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

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

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

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu Jiangnan Water Co., Ltd.

-1.89%

0.33

23.08%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.73%

EBIT Growth (5y)

2.51%

EBIT to Interest (avg)

12.50

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.03

Sales to Capital Employed (avg)

0.30

Tax Ratio

25.57%

Dividend Payout Ratio

30.25%

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

1.18

EV to EBIT

18.75

EV to EBITDA

9.85

EV to Capital Employed

1.19

EV to Sales

3.59

PEG Ratio

1.67

Dividend Yield

2.31%

ROCE (Latest)

6.33%

ROE (Latest)

8.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

ROCE(HY)

Highest at 9.97%

RAW MATERIAL COST(Y)

Fallen by 0.61% (YoY

-12What is not working for the Company

NET SALES(Q)

At CNY 280.49 MM has Fallen at -25.83%

OPERATING CASH FLOW(Y)

Lowest at CNY 367.41 MM

INTEREST(Q)

At CNY 5.64 MM has Grown at 103.07%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,426.59

CASH AND EQV(HY)

Lowest at CNY 1,768.58 MM

OPERATING PROFIT(Q)

Lowest at CNY 80.47 MM

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

Raw Material Cost

Fallen by 0.61% (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.

Net Sales

At CNY 280.49 MM has Fallen at -25.83%

over average net sales of the previous four periods of CNY 378.17 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 5.64 MM has Grown at 103.07%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,426.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 367.41 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Lowest at CNY 280.49 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 80.47 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Cash and Eqv

Lowest at CNY 1,768.58 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents