Midea Group Co. Ltd. (000333) 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

Midea Group Co. Ltd.

Why is Midea Group Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.26% and Operating profit at 11.68% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 63,183.1 MM
ROCE(HY) Lowest at 19.13%
DEBT-EQUITY RATIO (HY) Highest at -1.51 %

With ROE of 18.32%, it has a fair valuation with a 2.47 Price to Book Value

Over the past year, while the stock has generated a return of 8.85%, its profits have risen by 1.1% ; the PEG ratio of the company is 13.5
At the current price, the company has a high dividend yield of 4.9

Majority shareholders : FIIs

Underperformed the market in the last 1 year

The stock has generated a return of 8.85% in the last 1 year, much lower than market (China Shanghai Composite) returns of 20.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Midea Group Co. Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Midea Group Co. Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Midea Group Co. Ltd.

4.54%

1.18

16.73%

China Shanghai Composite

19.22%

1.46

13.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.26%

EBIT Growth (5y)

11.68%

EBIT to Interest (avg)

16.30

Debt to EBITDA (avg)

0.26

Net Debt to Equity (avg)

-0.18

Sales to Capital Employed (avg)

1.38

Tax Ratio

17.14%

Dividend Payout Ratio

69.13%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

20.30%

ROE (avg)

21.04%

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

2.47

EV to EBIT

13.04

EV to EBITDA

11.19

EV to Capital Employed

2.50

EV to Sales

1.23

PEG Ratio

13.47

Dividend Yield

4.90%

ROCE (Latest)

19.19%

ROE (Latest)

18.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

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

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 3,740.06

RAW MATERIAL COST(Y)

Fallen by -0.2% (YoY

CASH AND EQV(HY)

Highest at CNY 339,170.14 MM

NET SALES(Q)

Highest at CNY 131,580.87 MM

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 63,183.1 MM

ROCE(HY)

Lowest at 19.13%

DEBT-EQUITY RATIO (HY)

Highest at -1.51 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.59 times

Here's what is working for Midea Group Co. Ltd.

Interest Coverage Ratio

Highest at 3,740.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CNY 131,580.87 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 339,170.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -0.2% (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 Midea Group Co. Ltd.

Operating Cash Flow

Lowest at CNY 63,183.1 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -1.51 %

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 5.59 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio