LB Group Co., Ltd. (002601) 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

LB Group Co., Ltd.

Why is LB Group Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 11.66% and Operating profit at -15.91% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 15.13% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.66% and Operating profit at -15.91% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

ROCE(HY) Lowest at 3.2%
INTEREST COVERAGE RATIO(Q) Lowest at 380.83
OPERATING PROFIT(Q) Lowest at CNY 419.21 MM

Below par performance in long term as well as near term

Along with generating -8.90% 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 Specialty Chemicals)

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

Is LB Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

LB Group Co., Ltd.

-8.9%

-0.84

35.31%

China Shanghai Composite

21.28%

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)

11.66%

EBIT Growth (5y)

-15.91%

EBIT to Interest (avg)

10.30

Debt to EBITDA (avg)

2.62

Net Debt to Equity (avg)

0.99

Sales to Capital Employed (avg)

0.51

Tax Ratio

23.76%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

11.90%

ROE (avg)

15.13%

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

1.22

EV to EBIT

31.93

EV to EBITDA

12.04

EV to Capital Employed

1.12

EV to Sales

1.85

PEG Ratio

Dividend Yield

5.12%

ROCE (Latest)

3.50%

ROE (Latest)

3.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 4,156.89 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.01 times

NET SALES(Q)

Highest at CNY 7,158.02 MM

-20What is not working for the Company

ROCE(HY)

Lowest at 3.2%

INTEREST COVERAGE RATIO(Q)

Lowest at 380.83

OPERATING PROFIT(Q)

Lowest at CNY 419.21 MM

NET PROFIT(Q)

At CNY 188.67 MM has Fallen at -42.43%

RAW MATERIAL COST(Y)

Grown by 30.83% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.04 times

OPERATING PROFIT MARGIN(Q)

Lowest at 5.86 %

PRE-TAX PROFIT(Q)

At CNY 280.47 MM has Fallen at -34.81%

Here's what is working for LB Group Co., Ltd.

Operating Cash Flow

Highest at CNY 4,156.89 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 7,158.02 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 3.01 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for LB Group Co., Ltd.

Interest Coverage Ratio

Lowest at 380.83

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 419.21 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Net Profit

At CNY 188.67 MM has Fallen at -42.43%

over average net sales of the previous four periods of CNY 327.75 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit Margin

Lowest at 5.86 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 280.47 MM has Fallen at -34.81%

over average net sales of the previous four periods of CNY 430.22 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 4.04 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 30.83% (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