Neway CNC Equipment (Suzhou) Co., Ltd. () 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

Neway CNC Equipment (Suzhou) Co., Ltd.

Why is Neway CNC Equipment (Suzhou) Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 14.40% and Operating profit at 13.87% over the last 5 years

Flat results in Sep 25

ROCE(HY) Lowest at 17.94%
DEBT-EQUITY RATIO (HY) Highest at 13.48 %
OPERATING PROFIT MARGIN(Q) Lowest at 9.66 %

With ROE of 18.39%, it has a fair valuation with a 4.07 Price to Book Value

Over the past year, while the stock has generated a return of 9.60%, its profits have risen by 4.7%

Underperformed the market in the last 1 year

The stock has generated a return of 9.60% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Neway CNC Equipment (Suzhou) 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 Neway CNC Equipment (Suzhou) Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Neway CNC Equipment (Suzhou) Co., Ltd.

3.11%

-0.17

51.50%

China Shanghai Composite

17.97%

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)

13.99%

EBIT Growth (5y)

7.19%

EBIT to Interest (avg)

73.24

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

0.89

Tax Ratio

10.80%

Dividend Payout Ratio

67.64%

Pledged Shares

Institutional Holding

ROCE (avg)

18.70%

ROE (avg)

17.29%

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

4.78

EV to EBIT

34.47

EV to EBITDA

29.38

EV to Capital Employed

4.31

EV to Sales

3.10

PEG Ratio

Dividend Yield

ROCE (Latest)

12.50%

ROE (Latest)

15.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

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

8What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 2.11 times

RAW MATERIAL COST(Y)

Fallen by -2.72% (YoY

NET SALES(Q)

At CNY 711.93 MM has Grown at 25.04%

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 260.81 MM

ROCE(HY)

Lowest at 16.67%

DEBT-EQUITY RATIO (HY)

Highest at 14.21 %

INTEREST COVERAGE RATIO(Q)

Lowest at 2,848.85

OPERATING PROFIT(Q)

Lowest at CNY 60.11 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.44 %

Here's what is working for Neway CNC Equipment (Suzhou) Co., Ltd.

Inventory Turnover Ratio

Highest at 2.11 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

Net Sales

At CNY 711.93 MM has Grown at 25.04%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -2.72% (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 Neway CNC Equipment (Suzhou) Co., Ltd.

Operating Cash Flow

Lowest at CNY 260.81 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 Coverage Ratio

Lowest at 2,848.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 14.21 % and Grown

In each half year 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

Operating Profit

Lowest at CNY 60.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.44 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales