Nanjing Iron & Steel Co., Ltd. (600282) 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

Nanjing Iron & Steel Co., Ltd.

Why is Nanjing Iron & Steel Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 2.21% and Operating profit at -2.60% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 10.44% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.21% and Operating profit at -2.60% over the last 5 years

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

NET SALES(HY) At CNY 28,930.4 MM has Grown at -10.76%
INVENTORY TURNOVER RATIO(HY) Lowest at 6.2 times
DEBTORS TURNOVER RATIO(HY) Lowest at 5.54 times

With ROE of 8.35%, it has a very attractive valuation with a 1.16 Price to Book Value

Over the past year, while the stock has generated a return of 21.97%, its profits have risen by 6.6% ; the PEG ratio of the company is 2.1
At the current price, the company has a high dividend yield of 4

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 Ferrous Metals)

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

Is Nanjing Iron & Steel Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nanjing Iron & Steel Co., Ltd.

16.63%

0.46

30.84%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.14%

EBIT Growth (5y)

-3.11%

EBIT to Interest (avg)

5.61

Debt to EBITDA (avg)

3.31

Net Debt to Equity (avg)

0.70

Sales to Capital Employed (avg)

1.17

Tax Ratio

15.34%

Dividend Payout Ratio

55.00%

Pledged Shares

Institutional Holding

ROCE (avg)

7.51%

ROE (avg)

10.44%

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

1.06

EV to EBIT

16.11

EV to EBITDA

9.67

EV to Capital Employed

1.04

EV to Sales

0.84

PEG Ratio

11.26

Dividend Yield

5.26%

ROCE (Latest)

6.43%

ROE (Latest)

8.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,698.89 MM

ROCE(HY)

Highest at 10.53%

RAW MATERIAL COST(Y)

Fallen by -10.21% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 67.38 %

-7What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 319.09

OPERATING PROFIT(Q)

Lowest at CNY 526.11 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.65 %

PRE-TAX PROFIT(Q)

Lowest at CNY 520.29 MM

NET PROFIT(Q)

Lowest at CNY 457.58 MM

Here's what is working for Nanjing Iron & Steel Co., Ltd.

Operating Cash Flow

Highest at CNY 3,698.89 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)

Debt-Equity Ratio

Lowest at 67.38 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -10.21% (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 Nanjing Iron & Steel Co., Ltd.

Interest Coverage Ratio

Lowest at 319.09

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 526.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.65 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 520.29 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 520.29 MM has Fallen at -28.61%

over average net sales of the previous four periods of CNY 728.8 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 457.58 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)