Longhorn Auto Co., Ltd. () 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

Longhorn Auto Co., Ltd.

Why is Longhorn Auto Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 16.72% and Operating profit at -5.92% over the last 5 years

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

INTEREST(9M) At CNY 4.86 MM has Grown at 11.36%
ROCE(HY) Lowest at 7.24%
INTEREST COVERAGE RATIO(Q) Lowest at 1,028.39

With ROE of 7.50%, it has a fair valuation with a 2.59 Price to Book Value

Over the past year, while the stock has generated a return of 95.08%, its profits have fallen by -13.1%

Market Beating Performance

The stock has generated a return of 95.08% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.01%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Longhorn Auto Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Longhorn Auto Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Longhorn Auto Co., Ltd.

-100.0%

2.04

74.50%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.72%

EBIT Growth (5y)

-5.92%

EBIT to Interest (avg)

51.80

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.50

Sales to Capital Employed (avg)

0.91

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

45.58%

Pledged Shares

Institutional Holding

ROCE (avg)

19.22%

ROE (avg)

15.02%

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

2.59

EV to EBIT

37.44

EV to EBITDA

24.77

EV to Capital Employed

3.49

EV to Sales

1.82

PEG Ratio

Dividend Yield

ROCE (Latest)

9.32%

ROE (Latest)

7.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly 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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 96.76 MM

RAW MATERIAL COST(Y)

Fallen by -1.64% (YoY

NET SALES(Q)

At CNY 457.81 MM has Grown at 26.79%

-14What is not working for the Company

INTEREST(9M)

At CNY 4.86 MM has Grown at 11.36%

ROCE(HY)

Lowest at 7.24%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,028.39

DEBT-EQUITY RATIO (HY)

Highest at -30.65 %

OPERATING PROFIT MARGIN(Q)

Lowest at 4.35 %

NET PROFIT(Q)

Lowest at CNY 16.75 MM

EPS(Q)

Lowest at CNY 0.18

Here's what is working for Longhorn Auto Co., Ltd.

Operating Cash Flow

Highest at CNY 96.76 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 457.81 MM has Grown at 26.79%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -1.64% (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 Longhorn Auto Co., Ltd.

Interest Coverage Ratio

Lowest at 1,028.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 4.86 MM has Grown at 11.36%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 4.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 16.75 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -28.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.18

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -30.65 %

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