Levima Advanced Materials Corp. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Levima Advanced Materials Corp.

Why is Levima Advanced Materials Corp. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 7.24% and Operating profit at -10.60% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 10.14% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 7.24% and Operating profit at -10.60% over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 614.4 MM
DEBT-EQUITY RATIO (HY) Highest at 134.41 %
INVENTORY TURNOVER RATIO(HY) Lowest at 7.23%

With ROE of 3.98%, it has a very expensive valuation with a 3.78 Price to Book Value

Over the past year, while the stock has generated a return of 22.00%, its profits have risen by 10.5%

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 Specialty Chemicals)

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

Is Levima Advanced Materials Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Levima Advanced Materials Corp.

22.73%

0.94

36.62%

China Shanghai Composite

15.85%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.24%

EBIT Growth (5y)

-10.60%

EBIT to Interest (avg)

4.51

Debt to EBITDA (avg)

4.79

Net Debt to Equity (avg)

1.21

Sales to Capital Employed (avg)

0.42

Tax Ratio

11.25%

Dividend Payout Ratio

34.19%

Pledged Shares

Institutional Holding

ROCE (avg)

7.64%

ROE (avg)

10.14%

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

3.78

EV to EBIT

132.19

EV to EBITDA

41.41

EV to Capital Employed

2.18

EV to Sales

6.40

PEG Ratio

Dividend Yield

ROCE (Latest)

1.65%

ROE (Latest)

3.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by -43.84% (YoY

OPERATING PROFIT(Q)

Highest at CNY 272.91 MM

OPERATING PROFIT MARGIN(Q)

Highest at 20.04 %

-22What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 614.4 MM

DEBT-EQUITY RATIO (HY)

Highest at 134.41 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.23%

NET SALES(Q)

At CNY 1,362.14 MM has Fallen at -12.83%

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.54%

INTEREST(Q)

Highest at CNY 35.72 MM

Here's what is working for Levima Advanced Materials Corp.

Operating Profit

Highest at CNY 272.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 20.04 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -43.84% (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 Levima Advanced Materials Corp.

Operating Cash Flow

Lowest at CNY 614.4 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)

Net Sales

At CNY 1,362.14 MM has Fallen at -12.83%

over average net sales of the previous four periods of CNY 1,562.63 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 35.72 MM has Grown at 16.96%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 134.41 % 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

Inventory Turnover Ratio

Lowest at 7.23% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at CNY 35.72 MM

in the last five periods and Increased by 16.96% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 7.54%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio