Ningbo Energy Group Co., Ltd. (600982) 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 Energy Group Co., Ltd.

Why is Ningbo Energy Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.87%

The company has been able to generate a Return on Capital Employed (avg) of 1.87% signifying low profitability per unit of total capital (equity and debt)

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 -2.29% and Operating profit at 18.21% 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 11.12% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.29% and Operating profit at 18.21% over the last 5 years

The company has declared Negative results for the last 10 consecutive quarters

NET PROFIT(9M) At CNY -548.46 MM has Grown at -302.54%
INTEREST COVERAGE RATIO(Q) Lowest at 134.61
DEBT-EQUITY RATIO (HY) Highest at 181.48 %

With ROE of 8.67%, it has a very expensive valuation with a 1.16 Price to Book Value

Over the past year, while the stock has generated a return of 16.43%, its profits have fallen by -20.8%
At the current price, the company has a high dividend yield of 3.3

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 Power)

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

Is Ningbo Energy Group Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Ningbo Energy Group Co., Ltd.

18.5%

0.98

31.36%

China Shanghai Composite

13.33%

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)

-2.29%

EBIT Growth (5y)

18.21%

EBIT to Interest (avg)

1.84

Debt to EBITDA (avg)

12.09

Net Debt to Equity (avg)

1.37

Sales to Capital Employed (avg)

0.41

Tax Ratio

39.66%

Dividend Payout Ratio

58.64%

Pledged Shares

Institutional Holding

ROCE (avg)

1.87%

ROE (avg)

11.12%

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

1.16

EV to EBIT

65.99

EV to EBITDA

20.50

EV to Capital Employed

1.05

EV to Sales

3.34

PEG Ratio

Dividend Yield

3.30%

ROCE (Latest)

1.60%

ROE (Latest)

8.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 951.66 MM

NET PROFIT(Q)

At CNY 86.65 MM has Grown at 169.06%

RAW MATERIAL COST(Y)

Fallen by -158.54% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 54.7 MM

EPS(Q)

Highest at CNY 0.09

-17What is not working for the Company

NET PROFIT(9M)

At CNY -548.46 MM has Grown at -302.54%

INTEREST COVERAGE RATIO(Q)

Lowest at 134.61

DEBT-EQUITY RATIO (HY)

Highest at 181.48 %

NET SALES(Q)

Lowest at CNY 822.01 MM

OPERATING PROFIT(Q)

Lowest at CNY 54.92 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.68 %

Here's what is working for Ningbo Energy Group Co., Ltd.

Operating Cash Flow

Highest at CNY 951.66 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

At CNY 86.65 MM has Grown at 169.06%

over average net sales of the previous four periods of CNY -125.47 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 54.7 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

EPS

Highest at CNY 0.09

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -158.54% (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 Energy Group Co., Ltd.

Net Sales

At CNY 822.01 MM has Fallen at -17.9%

over average net sales of the previous four periods of CNY 1,001.2 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 134.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 822.01 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 54.92 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.68 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 181.48 %

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