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Liuzhou Iron & Steel Co., Ltd.

  • Market Cap: Mid Cap
  • Industry: Ferrous Metals
  • ISIN: CNE000001R68
  • SHG: 601003
CNY
3.49
-0.03 (-0.85%)

Sep 24

SHG

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Liuzhou Iron & Steel Co., Ltd.

Why is Liuzhou Iron & Steel Co., Ltd. ?

1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.26%
  • Poor long term growth as Net Sales has grown by an annual rate of 1.93% and Operating profit at -6.95% over the last 5 years
  • The company is Net-Debt Free
2
Negative results in Jun 26
  • PRE-TAX PROFIT(Q) At CNY 79.24 MM has Fallen at -72.53%
  • NET PROFIT(Q) At CNY 46.44 MM has Fallen at -56.2%
  • CASH AND EQV(HY) Lowest at CNY 7,873.7 MM
3
With ROE of 10.32%, it has a expensive valuation with a 0.96 Price to Book Value
  • Over the past year, while the stock has generated a return of -32.39%, its profits have risen by 627.3% ; the PEG ratio of the company is 0
4
Underperformed the market in the last 1 year
  • Even though the market (China Shanghai Composite) has generated returns of 3.23% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -32.39% returns
stock-recommendationReal-Time Research Report

Verdict Report

How much should you sell?

  1. 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 Ferrous Metals)

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

Is Liuzhou Iron & Steel Co., Ltd. for you?

High Risk, High Return

Absolute
Risk Adjusted
Volatility
Liuzhou Iron & Steel Co., Ltd.
-32.76%
0.78
39.92%
China Shanghai Composite
0.9%
0.22
14.72%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
1.93%
EBIT Growth (5y)
-6.95%
EBIT to Interest (avg)
0.17
Debt to EBITDA (avg)
22.47
Net Debt to Equity (avg)
3.20
Sales to Capital Employed (avg)
1.80
Tax Ratio
15.64%
Dividend Payout Ratio
38.20%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
1.94%
ROE (avg)
5.00%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
9
Industry P/E
Price to Book Value
0.96
EV to EBIT
20.65
EV to EBITDA
8.78
EV to Capital Employed
0.99
EV to Sales
0.49
PEG Ratio
0.01
Dividend Yield
2.85%
ROCE (Latest)
4.78%
ROE (Latest)
10.32%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bullish
Mildly Bearish
RSI
Bearish
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
Mildly Bearish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CNY 4,316.57 MM

RAW MATERIAL COST(Y)

Fallen by -4.47% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 255.15 %

INVENTORY TURNOVER RATIO(HY)

Highest at 11.99 times

-15What is not working for the Company
PRE-TAX PROFIT(Q)

At CNY 79.24 MM has Fallen at -72.53%

NET PROFIT(Q)

At CNY 46.44 MM has Fallen at -56.2%

CASH AND EQV(HY)

Lowest at CNY 7,873.7 MM

Here's what is working for Liuzhou Iron & Steel Co., Ltd.

Operating Cash Flow
Highest at CNY 4,316.57 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)

Debt-Equity Ratio
Lowest at 255.15 %
in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio
Highest at 11.99 times
in the last five Semi-Annual periods
MOJO Watch
Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost
Fallen by -4.47% (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 Liuzhou Iron & Steel Co., Ltd.

Pre-Tax Profit
At CNY 79.24 MM has Fallen at -72.53%
over average net sales of the previous four periods of CNY 288.45 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit
At CNY 46.44 MM has Fallen at -56.2%
over average net sales of the previous four periods of CNY 106.04 MM
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CNY MM)

Cash and Eqv
Lowest at CNY 7,873.7 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is deteriorating

Cash and Cash Equivalents

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