Ningbo Daye Garden Machinery Co., Ltd. (300879) 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 Daye Garden Machinery Co., Ltd.

Why is Ningbo Daye Garden Machinery Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.68%

The company has been able to generate a Return on Capital Employed (avg) of 2.68% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 27.46% and Operating profit at -204.83% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.89% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -13.38%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY -0.49 MM
PRE-TAX PROFIT(Q) At CNY 23.39 MM has Fallen at -88.94%
NET PROFIT(Q) At CNY 21.44 MM has Fallen at -89.25%

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 -55.97%, its profits have fallen by -225.5%
At the current price, the company has a high dividend yield of 0

Below par performance in long term as well as near term

Along with generating -55.97% 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 Automobiles)

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

Is Ningbo Daye Garden Machinery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ningbo Daye Garden Machinery Co., Ltd.

-55.45%

0.92

44.58%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.46%

EBIT Growth (5y)

-204.83%

EBIT to Interest (avg)

2.03

Debt to EBITDA (avg)

12.13

Net Debt to Equity (avg)

1.15

Sales to Capital Employed (avg)

0.64

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.68%

ROE (avg)

4.89%

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

0.82

EV to EBIT

-32.20

EV to EBITDA

71.42

EV to Capital Employed

0.93

EV to Sales

0.78

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.88%

ROE (Latest)

-17.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.24% (YoY

CASH AND EQV(HY)

Highest at CNY 2,670.07 MM

-32What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -0.49 MM

PRE-TAX PROFIT(Q)

At CNY 23.39 MM has Fallen at -88.94%

NET PROFIT(Q)

At CNY 21.44 MM has Fallen at -89.25%

ROCE(HY)

Lowest at -16.41%

DEBT-EQUITY RATIO (HY)

Highest at 161.03 %

NET SALES(Q)

Fallen at -13.38%

INTEREST(Q)

Highest at CNY 20.78 MM

Here's what is working for Ningbo Daye Garden Machinery Co., Ltd.

Cash and Eqv

Highest at CNY 2,670.07 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.24% (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 Ningbo Daye Garden Machinery Co., Ltd.

Pre-Tax Profit

At CNY 23.39 MM has Fallen at -88.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 21.44 MM has Fallen at -89.25%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -0.49 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 20.78 MM has Grown at 26.03%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Fallen at -13.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 20.78 MM

in the last five periods and Increased by 26.03% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 161.03 %

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