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 14.79% and Operating profit at -4.66% 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 14.79% and Operating profit at -4.66% over the last 5 years

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

ROCE(HY) Lowest at 5.4%
RAW MATERIAL COST(Y) Grown by 23.68% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 2.65 times

Underperformed the market in the last 1 year

The stock has generated a return of 2.01% in the last 1 year, much lower than market (China Shanghai Composite) returns of 24.03%

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

LB Group Co., Ltd.

3.83%

-0.64

32.30%

China Shanghai Composite

24.98%

1.86

12.92%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.79%

EBIT Growth (5y)

-4.66%

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

87.69%

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

2.29

EV to EBIT

25.30

EV to EBITDA

12.24

EV to Capital Employed

1.64

EV to Sales

2.87

PEG Ratio

Dividend Yield

3.58%

ROCE (Latest)

6.49%

ROE (Latest)

8.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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 3,707.41 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 82.1%

-17What is not working for the Company

ROCE(HY)

Lowest at 5.4%

RAW MATERIAL COST(Y)

Grown by 23.68% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.65 times

DIVIDEND PER SHARE(HY)

Lowest at CNY 4.4

NET SALES(Q)

Lowest at CNY 6,108.93 MM

OPERATING PROFIT(Q)

Lowest at CNY 465.03 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.61 %

PRE-TAX PROFIT(Q)

At CNY 376.72 MM has Fallen at -41.01%

NET PROFIT(Q)

At CNY 289.19 MM has Fallen at -39.78%

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

Operating Cash Flow

Highest at CNY 3,707.41 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)

Dividend Payout Ratio

Highest at 82.1% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Net Sales

Lowest at CNY 6,108.93 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 6,108.93 MM has Fallen at -9.16%

over average net sales of the previous four periods of CNY 6,725.19 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 465.03 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.61 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 376.72 MM has Fallen at -41.01%

over average net sales of the previous four periods of CNY 638.61 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 289.19 MM has Fallen at -39.78%

over average net sales of the previous four periods of CNY 480.25 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 2.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Dividend per share

Lowest at CNY 4.4

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CNY)

Raw Material Cost

Grown by 23.68% (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