Qingdao Sentury Tire Co., Ltd. (002984) 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

Qingdao Sentury Tire Co., Ltd.

Why is Qingdao Sentury Tire Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 12.69% and Operating profit at 4.71% over the last 5 years

NET PROFIT(HY) At CNY 654.99 MM has Grown at -47.21%
INTEREST(HY) At CNY 50.78 MM has Grown at 11.84%
OPERATING CASH FLOW(Y) Lowest at CNY 652.36 MM

With ROE of 12.92%, it has a expensive valuation with a 1.44 Price to Book Value

Over the past year, while the stock has generated a return of -31.26%, its profits have fallen by -5.5%
At the current price, the company has a high dividend yield of 0.8

Below par performance in long term as well as near term

Along with generating -31.26% 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 Auto Components & Equipments)

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

Is Qingdao Sentury Tire Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Qingdao Sentury Tire Co., Ltd.

-30.57%

-1.04

30.67%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.69%

EBIT Growth (5y)

4.71%

EBIT to Interest (avg)

17.35

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.06

Sales to Capital Employed (avg)

0.55

Tax Ratio

8.41%

Dividend Payout Ratio

23.68%

Pledged Shares

Institutional Holding

ROCE (avg)

14.33%

ROE (avg)

13.34%

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

1.44

EV to EBIT

9.98

EV to EBITDA

7.54

EV to Capital Employed

1.51

EV to Sales

2.12

PEG Ratio

Dividend Yield

0.81%

ROCE (Latest)

15.13%

ROE (Latest)

12.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

Bullish

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

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

1What is working for the Company

NET SALES(Q)

Highest at CNY 2,318.28 MM

-30What is not working for the Company

NET PROFIT(HY)

At CNY 654.99 MM has Grown at -47.21%

INTEREST(HY)

At CNY 50.78 MM has Grown at 11.84%

OPERATING CASH FLOW(Y)

Lowest at CNY 652.36 MM

ROCE(HY)

Lowest at 11.08%

DEBT-EQUITY RATIO (HY)

Highest at 6.7 %

INTEREST COVERAGE RATIO(Q)

Lowest at 1,461.2

PRE-TAX PROFIT(Q)

Lowest at CNY 357.46 MM

RAW MATERIAL COST(Y)

Grown by 41.28% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.08 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.23 times

OPERATING PROFIT(Q)

Lowest at CNY 377.92 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 16.3 %

Here's what is working for Qingdao Sentury Tire Co., Ltd.

Net Sales

Highest at CNY 2,318.28 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Here's what is not working for Qingdao Sentury Tire Co., Ltd.

Net Profit

At CNY 654.99 MM has Grown at -47.21%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 50.78 MM has Grown at 11.84%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,461.2

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

Lowest at CNY 357.46 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 6.7 % and Grown

In each half year 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

Operating Cash Flow

Lowest at CNY 652.36 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 377.92 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 16.3 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.08 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 6.23 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 41.28% (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