Mclon Jewellery 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

Mclon Jewellery Co., Ltd.

Why is Mclon Jewellery Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 23.05% and Operating profit at 15.47% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 3.99 MM
INTEREST(Q) At CNY 1.22 MM has Grown at 53.27%
DEBT-EQUITY RATIO (HY) Highest at -44.22 %

With ROE of 7.46%, it has a attractive valuation with a 0.35 Price to Book Value

Over the past year, while the stock has generated a return of -50.39%, its profits have risen by 20.1% ; the PEG ratio of the company is 0.2

Below par performance in long term as well as near term

Along with generating -50.39% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Mclon Jewellery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

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

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

Is Mclon Jewellery Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Mclon Jewellery Co., Ltd.

-50.39%

0.46

54.57%

China Shanghai Composite

21.28%

1.56

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.05%

EBIT Growth (5y)

15.47%

EBIT to Interest (avg)

59.26

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

1.40

Tax Ratio

18.73%

Dividend Payout Ratio

38.88%

Pledged Shares

Institutional Holding

ROCE (avg)

12.80%

ROE (avg)

7.21%

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

0.35

EV to EBIT

-1.16

EV to EBITDA

-1.00

EV to Capital Employed

-0.18

EV to Sales

-0.07

PEG Ratio

0.23

Dividend Yield

1.44%

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

7.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

10What is working for the Company

ROCE(HY)

Highest at 7.59%

INTEREST COVERAGE RATIO(Q)

Highest at 6,007.51

RAW MATERIAL COST(Y)

Fallen by -84.91% (YoY

OPERATING PROFIT(Q)

Highest at CNY 73.18 MM

OPERATING PROFIT MARGIN(Q)

Highest at 12.09 %

PRE-TAX PROFIT(Q)

Highest at CNY 74.55 MM

NET PROFIT(Q)

Highest at CNY 56.84 MM

EPS(Q)

Highest at CNY 0.22

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 3.99 MM

INTEREST(Q)

At CNY 1.22 MM has Grown at 53.27%

DEBT-EQUITY RATIO (HY)

Highest at -44.22 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.25 times

NET SALES(Q)

Fallen at -15.26%

Here's what is working for Mclon Jewellery Co., Ltd.

Interest Coverage Ratio

Highest at 6,007.51

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at CNY 73.18 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 12.09 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 74.55 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 56.84 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.22

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -84.91% (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 Mclon Jewellery Co., Ltd.

Interest

At CNY 1.22 MM has Grown at 53.27%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 3.99 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Fallen at -15.26%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at -44.22 %

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 3.25 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio