Jiangsu Shagang Co., Ltd. (002075) 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 Shagang Co., Ltd.

Why is Jiangsu Shagang Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -4.03% and Operating profit at -37.00% over the last 5 years

Negative results in Mar 26

NET SALES(HY) At CNY 6,044.72 MM has Grown at -14.91%
INVENTORY TURNOVER RATIO(HY) Lowest at 6.24 times
DEBTORS TURNOVER RATIO(HY) Lowest at 20.91 times

With ROE of 6.65%, it has a expensive valuation with a 1.18 Price to Book Value

Over the past year, while the stock has generated a return of -32.57%, its profits have risen by 49.7% ; the PEG ratio of the company is 0.4
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 -32.57% 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 Ferrous Metals)

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

Is Jiangsu Shagang Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangsu Shagang Co., Ltd.

-32.57%

-0.22

32.62%

China Shanghai Composite

21.31%

1.56

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.03%

EBIT Growth (5y)

-37.00%

EBIT to Interest (avg)

22.09

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.81

Tax Ratio

17.91%

Dividend Payout Ratio

41.02%

Pledged Shares

Institutional Holding

ROCE (avg)

27.64%

ROE (avg)

14.94%

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

1.18

EV to EBIT

29.03

EV to EBITDA

6.63

EV to Capital Employed

1.32

EV to Sales

0.39

PEG Ratio

0.36

Dividend Yield

1.41%

ROCE (Latest)

4.54%

ROE (Latest)

6.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

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

2What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -42.31 %

-23What is not working for the Company

NET SALES(HY)

At CNY 6,044.72 MM has Grown at -14.91%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.24 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 20.91 times

INTEREST(Q)

At CNY 60.22 MM has Grown at 199.22%

INTEREST COVERAGE RATIO(Q)

Lowest at 34.56

PRE-TAX PROFIT(Q)

At CNY 76.23 MM has Fallen at -47.24%

RAW MATERIAL COST(Y)

Grown by 5.37% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 20.81 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.65 %

NET PROFIT(Q)

Lowest at CNY 32.01 MM

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

Debt-Equity Ratio

Lowest at -42.31 % 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

Here's what is not working for Jiangsu Shagang Co., Ltd.

Net Sales

At CNY 6,044.72 MM has Grown at -14.91%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 60.22 MM has Grown at 199.22%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 34.56

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 76.23 MM has Fallen at -47.24%

over average net sales of the previous four periods of CNY 144.5 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 32.01 MM has Fallen at -52.8%

over average net sales of the previous four periods of CNY 67.81 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 6.24 times and Fallen

In each half year 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 20.91 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 20.81 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.65 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 32.01 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 5.37% (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