Ninestar Corp. (002180) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ninestar Corp.

Why is Ninestar Corp. ?

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 2.97% and Operating profit at -21.98% 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 6.08% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 2.97% and Operating profit at -21.98% over the last 5 years

With a fall in Net Sales of -1.65%, the company declared Very Negative results in Mar 25

NET PROFIT(Q) At CNY 85.28 MM has Fallen at -54.59%
DEBT-EQUITY RATIO (HY) Highest at 94.08 %
INVENTORY TURNOVER RATIO(HY) Lowest at 2.98%

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 -31.42%, its profits have risen by 91.7%

Below par performance in long term as well as near term

Along with generating -31.42% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Electronics & Appliances)

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

Is Ninestar Corp. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ninestar Corp.

-100.0%

-0.52

37.57%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.97%

EBIT Growth (5y)

-21.98%

EBIT to Interest (avg)

0.09

Debt to EBITDA (avg)

2.03

Net Debt to Equity (avg)

0.77

Sales to Capital Employed (avg)

1.09

Tax Ratio

53.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.48%

ROE (avg)

6.08%

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

3.17

EV to EBIT

51.63

EV to EBITDA

15.57

EV to Capital Employed

3.13

EV to Sales

1.20

PEG Ratio

Dividend Yield

ROCE (Latest)

6.06%

ROE (Latest)

-6.93%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

10What is working for the Company

NET PROFIT(HY)

Higher at CNY -234.62 MM

RAW MATERIAL COST(Y)

Fallen by -8.7% (YoY

-8What is not working for the Company

NET PROFIT(Q)

At CNY 85.28 MM has Fallen at -54.59%

DEBT-EQUITY RATIO (HY)

Highest at 94.08 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.98%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.15%

NET SALES(Q)

Lowest at CNY 5,896.95 MM

PRE-TAX PROFIT(Q)

At CNY 213.62 MM has Fallen at -35.08%

Here's what is working for Ninestar Corp.

Raw Material Cost

Fallen by -8.7% (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 Ninestar Corp.

Net Profit

At CNY 85.28 MM has Fallen at -54.59%

over average net sales of the previous four periods of CNY 187.81 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 5,896.95 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

At CNY 5,896.95 MM has Fallen at -10.15%

over average net sales of the previous four periods of CNY 6,563.05 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 213.62 MM has Fallen at -35.08%

over average net sales of the previous four periods of CNY 329.05 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 94.08 %

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

Inventory Turnover Ratio

Lowest at 2.98%

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 5.15%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio