Ningbo Ronbay New Energy Technology Co., Ltd. (688005) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ningbo Ronbay New Energy Technology Co., Ltd.

Why is Ningbo Ronbay New Energy 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 32.94% and Operating profit at 82.33% 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 10.44% signifying low profitability per unit of shareholders funds
NET SALES(HY) At CNY 6,216.25 MM has Grown at -9.4%
ROCE(HY) Lowest at 2.6%
INTEREST COVERAGE RATIO(Q) Lowest at 399.65

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 16.22%, its profits have risen by 3.4%
At the current price, the company has a high dividend yield of 1.3

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 Specialty Chemicals)

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

Is Ningbo Ronbay New Energy Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ningbo Ronbay New Energy Technology Co., Ltd.

16.22%

1.07

61.49%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

32.94%

EBIT Growth (5y)

82.33%

EBIT to Interest (avg)

56.52

Debt to EBITDA (avg)

4.00

Net Debt to Equity (avg)

0.93

Sales to Capital Employed (avg)

1.07

Tax Ratio

23.49%

Dividend Payout Ratio

88.10%

Pledged Shares

Institutional Holding

ROCE (avg)

7.96%

ROE (avg)

10.44%

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

1.55

EV to EBIT

56.24

EV to EBITDA

18.08

EV to Capital Employed

1.30

EV to Sales

1.38

PEG Ratio

Dividend Yield

1.30%

ROCE (Latest)

2.31%

ROE (Latest)

3.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 2,280.84 MM

NET PROFIT(9M)

Higher at CNY 111.12 MM

-24What is not working for the Company

NET SALES(HY)

At CNY 6,216.25 MM has Grown at -9.4%

ROCE(HY)

Lowest at 2.6%

INTEREST COVERAGE RATIO(Q)

Lowest at 399.65

RAW MATERIAL COST(Y)

Grown by 25.76% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 172.19 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.27 %

PRE-TAX PROFIT(Q)

Lowest at CNY -26.92 MM

NET PROFIT(Q)

Lowest at CNY -52.97 MM

EPS(Q)

Lowest at CNY -0.08

Here's what is working for Ningbo Ronbay New Energy Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 2,280.84 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)

Here's what is not working for Ningbo Ronbay New Energy Technology Co., Ltd.

Pre-Tax Profit

At CNY -26.92 MM has Fallen at -131.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -52.97 MM has Fallen at -220.22%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 399.65

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 6,216.25 MM has Grown at -9.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 172.19 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.27 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -26.92 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -52.97 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.08

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 25.76% (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