Ningbo Dechang Electrical Machinery Made 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

Ningbo Dechang Electrical Machinery Made Co., Ltd.

Why is Ningbo Dechang Electrical Machinery Made Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 11.30% and Operating profit at -6.37% over the last 5 years

INTEREST COVERAGE RATIO(Q) Lowest at 2,076.68
OPERATING CASH FLOW(Y) Lowest at CNY 4.82 MM
ROCE(HY) Lowest at 9.18%

With ROE of 10.54%, it has a expensive valuation with a 2.78 Price to Book Value

Over the past year, while the stock has generated a return of -19.77%, its profits have fallen by -12.2%
At the current price, the company has a high dividend yield of 0.6

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -19.77% returns

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 Ningbo Dechang Electrical Machinery Made Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ningbo Dechang Electrical Machinery Made Co., Ltd.

-12.66%

-0.38

46.52%

China Shanghai Composite

16.67%

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)

11.30%

EBIT Growth (5y)

-6.37%

EBIT to Interest (avg)

40.96

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.15

Sales to Capital Employed (avg)

0.95

Tax Ratio

8.69%

Dividend Payout Ratio

24.40%

Pledged Shares

Institutional Holding

ROCE (avg)

15.37%

ROE (avg)

12.46%

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

2.78

EV to EBIT

30.66

EV to EBITDA

19.04

EV to Capital Employed

2.99

EV to Sales

1.86

PEG Ratio

Dividend Yield

0.57%

ROCE (Latest)

9.76%

ROE (Latest)

10.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

1What is working for the Company

NET SALES(Q)

Highest at CNY 1,220.49 MM

-33What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 2,076.68

OPERATING CASH FLOW(Y)

Lowest at CNY 4.82 MM

ROCE(HY)

Lowest at 9.18%

DEBT-EQUITY RATIO (HY)

Highest at -4.07 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.42 times

OPERATING PROFIT(Q)

Lowest at CNY 55.49 MM

PRE-TAX PROFIT(Q)

At CNY 53.45 MM has Fallen at -47.84%

NET PROFIT(Q)

At CNY 51.3 MM has Fallen at -45.66%

RAW MATERIAL COST(Y)

Grown by 16.98% (YoY

INTEREST(Q)

Highest at CNY 2.67 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.55 %

Here's what is working for Ningbo Dechang Electrical Machinery Made Co., Ltd.

Net Sales

Highest at CNY 1,220.49 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Ningbo Dechang Electrical Machinery Made Co., Ltd.

Interest Coverage Ratio

Lowest at 2,076.68 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 55.49 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Pre-Tax Profit

At CNY 53.45 MM has Fallen at -47.84%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 51.3 MM has Fallen at -45.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at -4.07 % 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

Inventory Turnover Ratio

Lowest at 5.42 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at CNY 4.82 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

Highest at CNY 2.67 MM

in the last five periods and Increased by 7.79% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit Margin

Lowest at 4.55 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 16.98% (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