Ningbo Boway Alloy Material Co., Ltd. (601137) 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

Ningbo Boway Alloy Material Co., Ltd.

Why is Ningbo Boway Alloy Material 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 19.78% and Operating profit at 16.23% 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 11.30% signifying low profitability per unit of shareholders funds

The company has declared negative results for the last 2 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY -365.6 MM
ROCE(HY) Lowest at 13.71%
INTEREST(Q) At CNY 61.68 MM has Grown at inf%

Below par performance in long term as well as near term

Along with generating -1.40% 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 Minerals & Mining)

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

Is Ningbo Boway Alloy Material Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Ningbo Boway Alloy Material Co., Ltd.

-100.0%

0.52

40.66%

China Shanghai Composite

21.43%

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)

22.65%

EBIT Growth (5y)

-166.08%

EBIT to Interest (avg)

10.13

Debt to EBITDA (avg)

3.68

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

1.26

Tax Ratio

8.99%

Dividend Payout Ratio

27.33%

Pledged Shares

Institutional Holding

ROCE (avg)

8.20%

ROE (avg)

11.30%

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

2.29

EV to EBIT

-407.27

EV to EBITDA

86.13

EV to Capital Employed

1.79

EV to Sales

1.28

PEG Ratio

Dividend Yield

0.15%

ROCE (Latest)

-0.44%

ROE (Latest)

-2.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

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

NET SALES(Q)

Highest at CNY 5,660.89 MM

-30What is not working for the Company

INTEREST(HY)

At CNY 274.11 MM has Grown at 563.5%

OPERATING CASH FLOW(Y)

Lowest at CNY -381.29 MM

PRE-TAX PROFIT(Q)

At CNY -57.82 MM has Fallen at -239.7%

NET PROFIT(Q)

At CNY -82.85 MM has Fallen at -364.36%

ROCE(HY)

Lowest at -3.14%

RAW MATERIAL COST(Y)

Grown by 45.45% (YoY

Here's what is working for Ningbo Boway Alloy Material Co., Ltd.

Net Sales

Highest at CNY 5,660.89 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Here's what is not working for Ningbo Boway Alloy Material Co., Ltd.

Interest

At CNY 274.11 MM has Grown at 563.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -57.82 MM has Fallen at -239.7%

over average net sales of the previous four periods of CNY 41.39 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -82.85 MM has Fallen at -364.36%

over average net sales of the previous four periods of CNY 31.34 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -381.29 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)

Raw Material Cost

Grown by 45.45% (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