Qingdao Weflo Valve Co., Ltd. (002871) 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

Qingdao Weflo Valve Co., Ltd.

Why is Qingdao Weflo Valve Co., Ltd. ?

Negative results in Mar 25

INTEREST(9M) At CNY 0.01 MM has Grown at inf%
NET SALES(Q) At CNY 119.44 MM has Fallen at -16.55%
OPERATING CASH FLOW(Y) Lowest at CNY 128.38 MM

With ROE of 15.80%, it has a very attractive valuation with a 2.38 Price to Book Value

Over the past year, while the stock has generated a return of 57.64%, its profits have risen by 11.4% ; the PEG ratio of the company is 1.3
At the current price, the company has a high dividend yield of 3

Market Beating Performance

The stock has generated a return of 57.64% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Qingdao Weflo Valve Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Qingdao Weflo Valve Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Qingdao Weflo Valve Co., Ltd.

-100.0%

2.04

45.47%

China Shanghai Composite

15.19%

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)

12.87%

EBIT Growth (5y)

24.21%

EBIT to Interest (avg)

88.46

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.61

Tax Ratio

9.81%

Dividend Payout Ratio

65.57%

Pledged Shares

Institutional Holding

ROCE (avg)

22.59%

ROE (avg)

13.46%

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

2.38

EV to EBIT

13.06

EV to EBITDA

10.89

EV to Capital Employed

3.06

EV to Sales

2.86

PEG Ratio

1.33

Dividend Yield

2.96%

ROCE (Latest)

23.42%

ROE (Latest)

15.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

5What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 3.93%

RAW MATERIAL COST(Y)

Fallen by -4.37% (YoY

CASH AND EQV(HY)

Highest at CNY 1,326.54 MM

-14What is not working for the Company

INTEREST(9M)

At CNY 0.01 MM has Grown at inf%

NET SALES(Q)

At CNY 119.44 MM has Fallen at -16.55%

OPERATING CASH FLOW(Y)

Lowest at CNY 128.38 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 831,502.13

OPERATING PROFIT(Q)

Lowest at CNY 23.79 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 19.91 %

EPS(Q)

Lowest at CNY 0.1

Here's what is working for Qingdao Weflo Valve Co., Ltd.

Inventory Turnover Ratio

Highest at 3.93% and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CNY 1,326.54 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -4.37% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Qingdao Weflo Valve Co., Ltd.

Interest

At CNY 0.01 MM has Grown at inf%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 119.44 MM has Fallen at -16.55%

over average net sales of the previous four periods of CNY 143.13 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 831,502.13

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 128.38 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 23.79 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 19.91 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at CNY 0.1

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)