Luzhou Laojiao Co., Ltd. (000568) 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

Luzhou Laojiao Co., Ltd.

Why is Luzhou Laojiao Co., Ltd. ?

Flat results in Mar 25

ROCE(HY) Lowest at 27.99%
INVENTORY TURNOVER RATIO(HY) Lowest at 0.33%
INTEREST(Q) At CNY 52 MM has Grown at inf%

With ROE of 28.20%, it has a fair valuation with a 4.19 Price to Book Value

Over the past year, while the stock has generated a return of -7.41%, its profits have fallen by -7.4%
At the current price, the company has a high dividend yield of 4.5

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -7.41% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Luzhou Laojiao Co., Ltd. should be less than 10%
Overall Portfolio exposure to Beverages should be less than 30%

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

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

Is Luzhou Laojiao Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Luzhou Laojiao Co., Ltd.

-6.85%

-0.48

29.59%

China Shanghai Composite

15.19%

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)

13.09%

EBIT Growth (5y)

22.04%

EBIT to Interest (avg)

48.29

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.53

Sales to Capital Employed (avg)

0.54

Tax Ratio

25.90%

Dividend Payout Ratio

64.81%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

62.14%

ROE (avg)

28.08%

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

4.19

EV to EBIT

9.73

EV to EBITDA

9.30

EV to Capital Employed

9.41

EV to Sales

5.81

PEG Ratio

Dividend Yield

4.49%

ROCE (Latest)

96.63%

ROE (Latest)

28.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 18,794.43 MM

DEBT-EQUITY RATIO (HY)

Lowest at -53.02 %

RAW MATERIAL COST(Y)

Fallen by 1.93% (YoY

CASH AND EQV(HY)

Highest at CNY 69,895.97 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 8.08%

NET SALES(Q)

Highest at CNY 8,262.43 MM

PRE-TAX PROFIT(Q)

Highest at CNY 6,089.69 MM

NET PROFIT(Q)

Highest at CNY 4,589.67 MM

EPS(Q)

Highest at CNY 3.14

-6What is not working for the Company

ROCE(HY)

Lowest at 27.99%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.33%

INTEREST(Q)

At CNY 52 MM has Grown at inf%

Here's what is working for Luzhou Laojiao Co., Ltd.

Operating Cash Flow

Highest at CNY 18,794.43 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 -53.02 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at CNY 8,262.43 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 6,089.69 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 4,589.67 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 3.14

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 69,895.97 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 8.08%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 1.93% (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 Luzhou Laojiao Co., Ltd.

Interest

At CNY 52 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 0.33% 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