Ningbo KBE Electrical Technology Co., Ltd. (300863) 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 KBE Electrical Technology Co., Ltd.

Why is Ningbo KBE Electrical Technology 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 31.21% and Operating profit at 28.80% 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 12.17% signifying low profitability per unit of shareholders funds

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 109.86 MM
DEBT-EQUITY RATIO (HY) Highest at 144.11 %
INVENTORY TURNOVER RATIO(HY) Lowest at 7.49 times

With ROE of 11.23%, it has a very expensive valuation with a 4.97 Price to Book Value

Over the past year, while the stock has generated a return of 43.27%, its profits have fallen by -3.2%
At the current price, the company has a high dividend yield of 0.3

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 Electronics & Appliances)

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

Is Ningbo KBE Electrical Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ningbo KBE Electrical Technology Co., Ltd.

46.25%

2.06

55.73%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

31.21%

EBIT Growth (5y)

28.80%

EBIT to Interest (avg)

4.01

Debt to EBITDA (avg)

4.61

Net Debt to Equity (avg)

0.88

Sales to Capital Employed (avg)

1.18

Tax Ratio

8.73%

Dividend Payout Ratio

16.03%

Pledged Shares

Institutional Holding

ROCE (avg)

8.63%

ROE (avg)

12.17%

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

4.97

EV to EBIT

44.45

EV to EBITDA

31.80

EV to Capital Employed

2.83

EV to Sales

2.33

PEG Ratio

Dividend Yield

0.26%

ROCE (Latest)

6.37%

ROE (Latest)

11.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.19% (YoY

CASH AND EQV(HY)

Highest at CNY 1,071.93 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 109.86 MM

DEBT-EQUITY RATIO (HY)

Highest at 144.11 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.49 times

Here's what is working for Ningbo KBE Electrical Technology Co., Ltd.

Cash and Eqv

Highest at CNY 1,071.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -0.19% (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 KBE Electrical Technology Co., Ltd.

Operating Cash Flow

Lowest at CNY 109.86 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 144.11 %

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 7.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio