North Industries Group Red Arrow Co., Ltd. (000519) 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

North Industries Group Red Arrow Co., Ltd.

Why is North Industries Group Red Arrow Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 10.05%

The company has been able to generate a Return on Capital Employed (avg) of 10.05% 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 -2.10% and Operating profit at -221.62% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET SALES(9M) At CNY 4,016.62 MM has Grown at -18.86%
INTEREST(9M) At CNY 9.85 MM has Grown at 71.4%
NET PROFIT(HY) At CNY -40.71 MM has Grown at -191.32%

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 10.88%, its profits have fallen by -159.7%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to North Industries Group Red Arrow Co., Ltd. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is North Industries Group Red Arrow Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

North Industries Group Red Arrow Co., Ltd.

16.06%

0.48

44.30%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.10%

EBIT Growth (5y)

-221.62%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.47

Tax Ratio

0.35%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

10.05%

ROE (avg)

4.95%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.41

EV to EBIT

-35.36

EV to EBITDA

-268.04

EV to Capital Employed

3.21

EV to Sales

4.32

PEG Ratio

Dividend Yield

ROCE (Latest)

-9.08%

ROE (Latest)

-4.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

NET SALES(Q)

At CNY 1,563.7 MM has Grown at 60.41%

OPERATING PROFIT(Q)

Highest at CNY 203.15 MM

PRE-TAX PROFIT(Q)

Highest at CNY 110.8 MM

NET PROFIT(Q)

Highest at CNY 88.25 MM

EPS(Q)

Highest at CNY 0.06

-26What is not working for the Company

NET SALES(9M)

At CNY 4,016.62 MM has Grown at -18.86%

INTEREST(9M)

At CNY 9.85 MM has Grown at 71.4%

NET PROFIT(HY)

At CNY -40.71 MM has Grown at -191.32%

OPERATING CASH FLOW(Y)

Lowest at CNY 96.37 MM

ROCE(HY)

Lowest at -3.99%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.79%

RAW MATERIAL COST(Y)

Grown by 33.66% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -36.03 %

Here's what is working for North Industries Group Red Arrow Co., Ltd.

Net Sales

At CNY 1,563.7 MM has Grown at 60.41%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 203.15 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 110.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 88.25 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.06

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for North Industries Group Red Arrow Co., Ltd.

Interest

At CNY 9.85 MM has Grown at 71.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 96.37 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)

Inventory Turnover Ratio

Lowest at 1.79% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debt-Equity Ratio

Highest at -36.03 %

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

Raw Material Cost

Grown by 33.66% (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