Mesnac Co., Ltd. (002073) 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

Mesnac Co., Ltd.

Why is Mesnac Co., Ltd. ?

With a fall in Net Sales of -7.29%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
ROCE(HY) Lowest at 5.76%
INTEREST(Q) At CNY 15.09 MM has Grown at 62.56%
INTEREST COVERAGE RATIO(Q) Lowest at 101.38

Below par performance in long term as well as near term

Along with generating -29.32% 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 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 Industrial Manufacturing)

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

Is Mesnac Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mesnac Co., Ltd.

-29.55%

-0.85

31.92%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.50%

EBIT Growth (5y)

28.39%

EBIT to Interest (avg)

5.69

Debt to EBITDA (avg)

0.14

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.75

Tax Ratio

10.95%

Dividend Payout Ratio

17.71%

Pledged Shares

Institutional Holding

ROCE (avg)

6.20%

ROE (avg)

6.01%

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

0.87

EV to EBIT

12.59

EV to EBITDA

7.48

EV to Capital Employed

0.84

EV to Sales

0.55

PEG Ratio

Dividend Yield

1.23%

ROCE (Latest)

6.70%

ROE (Latest)

6.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

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

3What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 3.74 times

RAW MATERIAL COST(Y)

Fallen by -6.58% (YoY

-25What is not working for the Company

ROCE(HY)

Lowest at 5.76%

INTEREST(Q)

At CNY 15.09 MM has Grown at 62.56%

INTEREST COVERAGE RATIO(Q)

Lowest at 101.38

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.81 times

NET SALES(Q)

Lowest at CNY 1,676.3 MM

OPERATING PROFIT(Q)

Lowest at CNY 15.3 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.91 %

PRE-TAX PROFIT(Q)

Lowest at CNY 34.94 MM

NET PROFIT(Q)

Lowest at CNY 30.38 MM

EPS(Q)

Lowest at CNY 0.03

Here's what is working for Mesnac Co., Ltd.

Debtors Turnover Ratio

Highest at 3.74 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 -6.58% (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 Mesnac Co., Ltd.

Pre-Tax Profit

At CNY 34.94 MM has Fallen at -63.63%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 30.38 MM has Fallen at -60.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 15.09 MM has Grown at 62.56%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 101.38

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 1,676.3 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 15.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.91 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 34.94 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 30.38 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.03

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 0.81 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Non Operating Income

Highest at CNY 0.99 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income