Miracle Automation Engineering Co., Ltd. (002009) 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

Miracle Automation Engineering Co., Ltd.

Why is Miracle Automation Engineering Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.81%

The company has been able to generate a Return on Capital Employed (avg) of 1.81% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -5.42% and Operating profit at -23.79% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.76% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -5.42% and Operating profit at -23.79% over the last 5 years

The company has declared Positive results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 313.42 MM
ROCE(HY) Highest at 1.83%
RAW MATERIAL COST(Y) Fallen by -56.4% (YoY)

With ROE of 1.86%, it has a fair valuation with a 4.30 Price to Book Value

Over the past year, while the stock has generated a return of 44.51%, its profits have risen by 118% ; the PEG ratio of the company is 2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Miracle Automation Engineering Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Miracle Automation Engineering Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Miracle Automation Engineering Co., Ltd.

44.51%

1.30

55.59%

China Shanghai Composite

21.43%

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)

-5.42%

EBIT Growth (5y)

-23.79%

EBIT to Interest (avg)

-0.56

Debt to EBITDA (avg)

4.85

Net Debt to Equity (avg)

0.66

Sales to Capital Employed (avg)

0.71

Tax Ratio

4.02%

Dividend Payout Ratio

36.79%

Pledged Shares

Institutional Holding

ROCE (avg)

1.81%

ROE (avg)

2.76%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

231

Industry P/E

Price to Book Value

4.30

EV to EBIT

282.25

EV to EBITDA

66.54

EV to Capital Employed

3.10

EV to Sales

3.50

PEG Ratio

1.96

Dividend Yield

ROCE (Latest)

1.10%

ROE (Latest)

1.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 313.42 MM

ROCE(HY)

Highest at 1.83%

RAW MATERIAL COST(Y)

Fallen by -56.4% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 57.83 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.02 times

NET PROFIT(Q)

At CNY 25.59 MM has Grown at 77.39%

-1What is not working for the Company

CASH AND EQV(HY)

Lowest at CNY 1,347.91 MM

Here's what is working for Miracle Automation Engineering Co., Ltd.

Operating Cash Flow

Highest at CNY 313.42 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)

Net Profit

At CNY 25.59 MM has Grown at 77.39%

over average net sales of the previous four periods of CNY 14.43 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 57.83 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.02 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -56.4% (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 Miracle Automation Engineering Co., Ltd.

Cash and Eqv

Lowest at CNY 1,347.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents