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 hold?

Overall Portfolio exposure to Nanjing Iron & Steel Co., Ltd. should be less than 10%
Overall Portfolio exposure to Ferrous Metals should be less than 30%

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

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

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

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Nanjing Iron & Steel Co., Ltd.

10.17%

0.46

30.84%

China Shanghai Composite

13.33%

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)

2.21%

EBIT Growth (5y)

-2.60%

EBIT to Interest (avg)

5.61

Debt to EBITDA (avg)

3.31

Net Debt to Equity (avg)

0.70

Sales to Capital Employed (avg)

1.20

Tax Ratio

15.34%

Dividend Payout Ratio

50.45%

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

1.16

EV to EBIT

21.04

EV to EBITDA

10.29

EV to Capital Employed

1.09

EV to Sales

0.90

PEG Ratio

2.11

Dividend Yield

4.01%

ROCE (Latest)

5.20%

ROE (Latest)

8.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 4,764.91 MM

ROCE(HY)

Highest at 10.18%

RAW MATERIAL COST(Y)

Fallen by -17.15% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 879.91 MM

NET PROFIT(Q)

Highest at CNY 709.9 MM

-12What is not working for the Company

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

INTEREST(Q)

At CNY 156.09 MM has Grown at 18.81%

OPERATING PROFIT(Q)

Lowest at CNY 913.76 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.37 %

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

Operating Cash Flow

Highest at CNY 4,764.91 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 879.91 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 709.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -17.15% (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

At CNY 156.09 MM has Grown at 18.81%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 28,930.4 MM has Grown at -10.76%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 6.2 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 5.54 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 913.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales