Nanxing Machinery Co., Ltd. (002757) 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

Nanxing Machinery Co., Ltd.

Why is Nanxing Machinery Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.37% and Operating profit at -14.73% over the last 5 years

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

NET PROFIT(HY) At CNY 48.62 MM has Grown at -60.49%
OPERATING CASH FLOW(Y) Lowest at CNY 400.86 MM
INTEREST(HY) At CNY 11.14 MM has Grown at 6.14%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -7.08%, its profits have fallen by -74.5%
At the current price, the company has a high dividend yield of 1.8

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 13.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -7.08% returns

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 Nanxing Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nanxing Machinery Co., Ltd.

-3.98%

1.01

56.48%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.37%

EBIT Growth (5y)

-14.73%

EBIT to Interest (avg)

15.95

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.19

Tax Ratio

26.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

13.98%

ROE (avg)

11.90%

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

2.60

EV to EBIT

36.78

EV to EBITDA

16.48

EV to Capital Employed

2.78

EV to Sales

1.60

PEG Ratio

Dividend Yield

1.84%

ROCE (Latest)

7.57%

ROE (Latest)

4.03%

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

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

4What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 7.43 times

CASH AND EQV(HY)

Highest at CNY 1,768.42 MM

DEBT-EQUITY RATIO (HY)

Lowest at -8.34 %

-20What is not working for the Company

NET PROFIT(HY)

At CNY 48.62 MM has Grown at -60.49%

OPERATING CASH FLOW(Y)

Lowest at CNY 400.86 MM

INTEREST(HY)

At CNY 11.14 MM has Grown at 6.14%

ROCE(HY)

Lowest at -13.27%

RAW MATERIAL COST(Y)

Grown by 11.22% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 38.81 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.74 %

Here's what is working for Nanxing Machinery Co., Ltd.

Inventory Turnover Ratio

Highest at 7.43 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CNY 1,768.42 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -8.34 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Nanxing Machinery Co., Ltd.

Net Profit

At CNY 48.62 MM has Grown at -60.49%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 400.86 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)

Interest

At CNY 11.14 MM has Grown at 6.14%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 38.81 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.74 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 11.22% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales