Offshore Oil Engineering Co., Ltd. (600583) 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

Offshore Oil Engineering Co., Ltd.

Why is Offshore Oil Engineering Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 10.88%

The company has been able to generate a Return on Capital Employed (avg) of 10.88% signifying low profitability per unit of total capital (equity and debt)
OPERATING CASH FLOW(Y) Lowest at CNY 2,646.73 MM
INTEREST(9M) At CNY 16.86 MM has Grown at 21.49%
NET SALES(HY) At CNY 12,495.94 MM has Grown at -15.31%

With ROE of 7.51%, it has a fair valuation with a 0.88 Price to Book Value

Over the past year, while the stock has generated a return of 71.65%, its profits have risen by 12% ; the PEG ratio of the company is 1
At the current price, the company has a high dividend yield of 3.8

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Offshore Oil Engineering Co., Ltd. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

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

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

Is Offshore Oil Engineering Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Offshore Oil Engineering Co., Ltd.

6.89%

1.32

32.64%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.93%

EBIT Growth (5y)

13.95%

EBIT to Interest (avg)

78.26

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.64

Sales to Capital Employed (avg)

1.13

Tax Ratio

17.80%

Dividend Payout Ratio

41.12%

Pledged Shares

Institutional Holding

ROCE (avg)

10.88%

ROE (avg)

5.29%

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

0.88

EV to EBIT

3.21

EV to EBITDA

1.81

EV to Capital Employed

0.68

EV to Sales

0.24

PEG Ratio

0.98

Dividend Yield

3.80%

ROCE (Latest)

21.30%

ROE (Latest)

7.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CNY 35,540.64 MM

DEBT-EQUITY RATIO (HY)

Lowest at -62.6 %

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 2,646.73 MM

INTEREST(9M)

At CNY 16.86 MM has Grown at 21.49%

NET SALES(HY)

At CNY 12,495.94 MM has Grown at -15.31%

INTEREST COVERAGE RATIO(Q)

Lowest at 4,886.52

RAW MATERIAL COST(Y)

Grown by 19.5% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.86 times

OPERATING PROFIT(Q)

Lowest at CNY 274.85 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 4.33 %

Here's what is working for Offshore Oil Engineering Co., Ltd.

Cash and Eqv

Highest at CNY 35,540.64 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -62.6 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Offshore Oil Engineering Co., Ltd.

Net Sales

At CNY 12,495.94 MM has Grown at -15.31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 16.86 MM has Grown at 21.49%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 2,646.73 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 4,886.52

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 274.85 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 4.33 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 2.86 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 19.5% (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

Non Operating Income

Highest at CNY 0.53 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income