Newton Resources Ltd. (1231) 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

GDH Guangnan (Holdings) Ltd.

Impro Precision Industries Ltd.

China Oriental Group Co. Ltd.

Xingda International Holdings Ltd.

Newton Resources Ltd.

Angang Steel Co., Ltd.

Maanshan Iron & Steel Co., Ltd.

Aowei Holding Ltd.

Da Ming International Holdings Ltd.

Huajin International Holdings Ltd.

IRC Ltd. (Hong Kong)

Why is Newton Resources Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 1.62%

Poor long term growth as Operating profit has grown by an annual rate -6.22% of over the last 5 years
The company is Net-Debt Free

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

ROCE(HY) Lowest at -27.45%
NET SALES(Q) Lowest at HKD 664.24 MM
RAW MATERIAL COST(Y) Grown by 1,223.53% (YoY)

With ROE of -7.48%, it has a Very Expensive valuation with a 5.30 Price to Book Value

Over the past year, while the stock has generated a return of 27.53%, its profits have fallen by -335.3%

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 Newton Resources Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Newton Resources Ltd.

27.53%

-0.20

127.16%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.48%

EBIT Growth (5y)

-6.22%

EBIT to Interest (avg)

0.11

Debt to EBITDA (avg)

0.23

Net Debt to Equity (avg)

-0.90

Sales to Capital Employed (avg)

8.34

Tax Ratio

21.60%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.34%

ROE (avg)

1.62%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

5.30

EV to EBIT

-59.49

EV to EBITDA

226.54

EV to Capital Employed

9.78

EV to Sales

0.57

PEG Ratio

Dividend Yield

ROCE (Latest)

-16.43%

ROE (Latest)

-7.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bearish

Bollinger Bands

Sideways

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Bearish

No Trend

OBV

Mildly Bullish

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

1What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at -104.95 %

-11What is not working for the Company

ROCE(HY)

Lowest at -27.45%

NET SALES(Q)

Lowest at HKD 664.24 MM

RAW MATERIAL COST(Y)

Grown by 1,223.53% (YoY

OPERATING PROFIT(Q)

Lowest at HKD -12.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -1.83 %

PRE-TAX PROFIT(Q)

Lowest at HKD -20.81 MM

NET PROFIT(Q)

Lowest at HKD -20.18 MM

EPS(Q)

Lowest at HKD -0.01

Here's what is working for Newton Resources Ltd.

Debt-Equity Ratio

Lowest at -104.95 %

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 Newton Resources Ltd.

Net Sales

Lowest at HKD 664.24 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (HKD MM)

Net Sales

Fallen at -36.9%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Operating Profit

Lowest at HKD -12.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at -1.83 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD -20.81 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD -20.18 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD -0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Raw Material Cost

Grown by 1,223.53% (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