Jiangxi Black Cat Carbon Black Co., Ltd. (002068) 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

Jiangxi Black Cat Carbon Black Co., Ltd.

Why is Jiangxi Black Cat Carbon Black Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.69%

The company has been able to generate a Return on Capital Employed (avg) of 2.69% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 11.76% and Operating profit at -31.70% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 3.29% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At CNY -418.64 MM has Grown at -948.91%
INTEREST(HY) At CNY 48.57 MM has Grown at 7.22%
ROCE(HY) Lowest at -20.14%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -6.80%, its profits have fallen by -270.2%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 20.96% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -6.80% returns

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 Industrial Products)

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

Is Jiangxi Black Cat Carbon Black Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Jiangxi Black Cat Carbon Black Co., Ltd.

3.48%

0.27

44.04%

China Shanghai Composite

21.22%

1.56

13.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.76%

EBIT Growth (5y)

-31.70%

EBIT to Interest (avg)

1.70

Debt to EBITDA (avg)

8.45

Net Debt to Equity (avg)

1.27

Sales to Capital Employed (avg)

1.36

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.69%

ROE (avg)

3.29%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.78

EV to EBIT

-95.03

EV to EBITDA

83.29

EV to Capital Employed

1.70

EV to Sales

1.26

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.79%

ROE (Latest)

-5.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-24What is not working for the Company

NET PROFIT(HY)

At CNY -418.64 MM has Grown at -948.91%

INTEREST(HY)

At CNY 48.57 MM has Grown at 7.22%

ROCE(HY)

Lowest at -20.14%

DEBT-EQUITY RATIO (HY)

Highest at 184.99 %

RAW MATERIAL COST(Y)

Grown by 135.44% (YoY

NET SALES(Q)

Lowest at CNY 1,898.04 MM

Here's what is not working for Jiangxi Black Cat Carbon Black Co., Ltd.

Net Profit

At CNY -418.64 MM has Grown at -948.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,898.04 MM has Fallen at -12.46%

over average net sales of the previous four periods of CNY 2,168.08 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 48.57 MM has Grown at 7.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 184.99 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at CNY 1,898.04 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Raw Material Cost

Grown by 135.44% (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