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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Luzhou Laojiao Co., Ltd.

Why is Luzhou Laojiao Co., Ltd. ?

Negative results in Mar 26

NET SALES(HY) At CNY 10,628.72 MM has Grown at -29.87%
INTEREST(HY) At CNY 64.81 MM has Grown at 24.64%
NET PROFIT(HY) At CNY 3,780.57 MM has Grown at -41.58%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -31.06% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Beverages)

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

Is Luzhou Laojiao Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Luzhou Laojiao Co., Ltd.

-31.06%

-1.81

29.26%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.96%

EBIT Growth (5y)

9.46%

EBIT to Interest (avg)

48.29

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.53

Sales to Capital Employed (avg)

0.50

Tax Ratio

25.90%

Dividend Payout Ratio

78.37%

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

2.40

EV to EBIT

7.75

EV to EBITDA

7.40

EV to Capital Employed

3.69

EV to Sales

4.25

PEG Ratio

Dividend Yield

7.07%

ROCE (Latest)

47.61%

ROE (Latest)

19.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

DEBTORS TURNOVER RATIO(HY)

Highest at 22.21 times

INTEREST COVERAGE RATIO(Q)

Highest at 14,881.88

RAW MATERIAL COST(Y)

Fallen by -1.71% (YoY

-25What is not working for the Company

NET SALES(HY)

At CNY 10,628.72 MM has Grown at -29.87%

INTEREST(HY)

At CNY 64.81 MM has Grown at 24.64%

NET PROFIT(HY)

At CNY 3,780.57 MM has Grown at -41.58%

OPERATING CASH FLOW(Y)

Lowest at CNY 7,825.01 MM

ROCE(HY)

Lowest at 19.55%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.24 times

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

Interest Coverage Ratio

Highest at 14,881.88

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debtors Turnover Ratio

Highest at 22.21 times and Grown

In each half year 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 -1.71% (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.

Net Sales

At CNY 10,628.72 MM has Grown at -29.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 64.81 MM has Grown at 24.64%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 3,780.57 MM has Grown at -41.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 0.24 times 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

Operating Cash Flow

Lowest at CNY 7,825.01 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)