Ningxia Western Venture Industrial Co., Ltd. (000557) 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

Ningxia Western Venture Industrial Co., Ltd.

Why is Ningxia Western Venture Industrial Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.78%

The company has been able to generate a Return on Capital Employed (avg) of 6.78% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 7.14% and Operating profit at -11.54% over the last 5 years

With a fall in PBT of -29.28%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 3 consecutive quarters
INTEREST(9M) At CNY 0 MM has Grown at inf%
OPERATING CASH FLOW(Y) Lowest at CNY 401.81 MM
INTEREST COVERAGE RATIO(Q) Lowest at 2,133,477.9

Below par performance in long term as well as near term

Along with generating -26.68% 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 Transport Services)

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

Is Ningxia Western Venture Industrial Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ningxia Western Venture Industrial Co., Ltd.

-25.54%

-0.47

23.35%

China Shanghai Composite

23.91%

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)

7.14%

EBIT Growth (5y)

-11.54%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.23

Tax Ratio

19.51%

Dividend Payout Ratio

9.97%

Pledged Shares

Institutional Holding

ROCE (avg)

6.78%

ROE (avg)

4.09%

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

0.42

EV to EBIT

6.84

EV to EBITDA

3.08

EV to Capital Employed

0.19

EV to Sales

0.63

PEG Ratio

0.70

Dividend Yield

2.70%

ROCE (Latest)

2.78%

ROE (Latest)

4.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

NET SALES(Q)

Highest at CNY 354.74 MM

-22What is not working for the Company

INTEREST(9M)

At CNY 0 MM has Grown at inf%

OPERATING CASH FLOW(Y)

Lowest at CNY 401.81 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 2,133,477.9

RAW MATERIAL COST(Y)

Grown by 22.76% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -28.81 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 20.62 times

PRE-TAX PROFIT(Q)

At CNY 57.23 MM has Fallen at -28.63%

NET PROFIT(Q)

At CNY 52.03 MM has Fallen at -29.08%

Here's what is working for Ningxia Western Venture Industrial Co., Ltd.

Net Sales

Highest at CNY 354.74 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Here's what is not working for Ningxia Western Venture Industrial Co., Ltd.

Interest

At CNY 0 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 401.81 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 Coverage Ratio

Lowest at 2,133,477.9

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 57.23 MM has Fallen at -28.63%

over average net sales of the previous four periods of CNY 80.18 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 52.03 MM has Fallen at -29.08%

over average net sales of the previous four periods of CNY 73.36 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at -28.81 %

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 20.62 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 22.76% (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