Kweichow Moutai Co., Ltd. (600519) 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

Kweichow Moutai Co., Ltd.

Why is Kweichow Moutai Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 54.68%

The company has been able to generate a Return on Capital Employed (avg) of 54.68% 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 11.71% and Operating profit at 11.19% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 31.65% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.71% and Operating profit at 11.19% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

INTEREST(HY) At CNY 21.03 MM has Grown at 381.38%
ROCE(HY) Lowest at 33.25%
DEBTORS TURNOVER RATIO(HY) Lowest at 1.23 times

With ROE of 31.61%, it has a very expensive valuation with a 5.39 Price to Book Value

Over the past year, while the stock has generated a return of -14.67%, its profits have fallen by -7.1%
At the current price, the company has a high dividend yield of 4.5

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 Beverages)

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

Is Kweichow Moutai Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kweichow Moutai Co., Ltd.

-13.73%

-0.99

22.82%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.71%

EBIT Growth (5y)

11.19%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

0.66

Tax Ratio

25.62%

Dividend Payout Ratio

79.16%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

58.90%

ROE (avg)

31.65%

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

5.39

EV to EBIT

12.46

EV to EBITDA

12.27

EV to Capital Employed

6.02

EV to Sales

8.14

PEG Ratio

Dividend Yield

4.47%

ROCE (Latest)

48.33%

ROE (Latest)

31.61%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 119,297.36 MM

RAW MATERIAL COST(Y)

Fallen by 0.89% (YoY

-18What is not working for the Company

INTEREST(HY)

At CNY 21.03 MM has Grown at 381.38%

ROCE(HY)

Lowest at 33.25%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.23 times

DEBT-EQUITY RATIO (HY)

Highest at -11.8 %

NET SALES(Q)

Lowest at CNY 37,575.16 MM

OPERATING PROFIT(Q)

Lowest at CNY 24,304.03 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 23,869.99 MM

NET PROFIT(Q)

Lowest at CNY 17,255.54 MM

EPS(Q)

Lowest at CNY 13.81

Here's what is working for Kweichow Moutai Co., Ltd.

Operating Cash Flow

Highest at CNY 119,297.36 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by 0.89% (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 Kweichow Moutai Co., Ltd.

Interest

At CNY 21.03 MM has Grown at 381.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 1.23 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

Net Sales

Lowest at CNY 37,575.16 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 24,304.03 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 23,869.99 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 17,255.54 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 13.81

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -11.8 %

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

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