Jiangxi Welgao Electronics Co., Ltd. () 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 Welgao Electronics Co., Ltd.

Why is Jiangxi Welgao Electronics Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.19%

The company has been able to generate a Return on Capital Employed (avg) of 4.19% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 40.50% and Operating profit at -7.03% over the last 5 years

Negative results in Mar 26

INTEREST(HY) At CNY 6.37 MM has Grown at 120.64%
OPERATING CASH FLOW(Y) Lowest at CNY -60.47 MM
INTEREST COVERAGE RATIO(Q) Lowest at 368.52

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 Electronics & Appliances)

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

Is Jiangxi Welgao Electronics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Jiangxi Welgao Electronics Co., Ltd.

92.41%

0.93

73.23%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

40.50%

EBIT Growth (5y)

-7.03%

EBIT to Interest (avg)

10.63

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.56

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

7.14%

Pledged Shares

Institutional Holding

ROCE (avg)

4.19%

ROE (avg)

4.89%

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

2.21

EV to EBIT

72.39

EV to EBITDA

29.98

EV to Capital Employed

2.10

EV to Sales

2.16

PEG Ratio

Dividend Yield

ROCE (Latest)

2.89%

ROE (Latest)

3.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bullish

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

10What is working for the Company

NET SALES(Q)

Highest at CNY 428.52 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.49 times

-32What is not working for the Company

INTEREST(HY)

At CNY 6.37 MM has Grown at 120.64%

OPERATING CASH FLOW(Y)

Lowest at CNY -60.47 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 368.52

PRE-TAX PROFIT(Q)

At CNY 8.02 MM has Fallen at -68.05%

NET PROFIT(Q)

At CNY 6.85 MM has Fallen at -69.9%

DEBT-EQUITY RATIO (HY)

Highest at 10.12 %

RAW MATERIAL COST(Y)

Grown by 9.03% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 11.9 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.78 %

Here's what is working for Jiangxi Welgao Electronics Co., Ltd.

Net Sales

Highest at CNY 428.52 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

At CNY 428.52 MM has Grown at 38.48%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 3.49 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Jiangxi Welgao Electronics Co., Ltd.

Interest

At CNY 6.37 MM has Grown at 120.64%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 368.52 and Fallen

In each period 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 8.02 MM has Fallen at -68.05%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.85 MM has Fallen at -69.9%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -60.47 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)

Debt-Equity Ratio

Highest at 10.12 % 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

Operating Profit

Lowest at CNY 11.9 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 9.03% (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