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 -28.71% 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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ningxia Western Venture Industrial Co., Ltd.

-30.04%

-0.52

24.15%

China Shanghai Composite

3.23%

1.20

14.07%

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

8.33%

Dividend Payout Ratio

9.97%

Pledged Shares

Institutional Holding

ROCE (avg)

6.24%

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

0.79

EV to EBIT

25.61

EV to EBITDA

11.51

EV to Capital Employed

0.71

EV to Sales

2.37

PEG Ratio

1.31

Dividend Yield

1.44%

ROCE (Latest)

2.78%

ROE (Latest)

4.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Mildly 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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-22What is not working for the Company

INTEREST(9M)

At CNY 0 MM has Grown at inf%

NET PROFIT(Q)

At CNY 22.26 MM has Fallen at -68.16%

OPERATING CASH FLOW(Y)

Lowest at CNY 413.03 MM

ROCE(HY)

Lowest at 1.14%

PRE-TAX PROFIT(Q)

At CNY 33.73 MM has Fallen at -55.21%

RAW MATERIAL COST(Y)

Grown by 45.45% (YoY

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)

Net Profit

At CNY 22.26 MM has Fallen at -68.16%

over average net sales of the previous four periods of CNY 69.92 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 33.73 MM has Fallen at -55.21%

over average net sales of the previous four periods of CNY 75.3 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 413.03 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Raw Material Cost

Grown by 45.45% (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