Shandong Iron & Steel Co., Ltd. (600022) 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

Shandong Iron & Steel Co., Ltd.

Why is Shandong Iron & Steel Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.33%

The company has been able to generate a Return on Capital Employed (avg) of 4.33% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -2.42% and Operating profit at -162.44% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 5.02% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.42% and Operating profit at -162.44% over the last 5 years

The company has declared Negative results for the last 9 consecutive quarters

NET SALES(HY) At CNY 35,573 MM has Grown at -14.29%
CASH AND EQV(HY) Lowest at CNY 11,866.75 MM
INVENTORY TURNOVER RATIO(HY) Lowest at 13.42 times

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 22.14%, its profits have fallen by -8%
At the current price, the company has a high dividend yield of 0

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 Ferrous Metals)

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

Is Shandong Iron & Steel Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Shandong Iron & Steel Co., Ltd.

8.63%

1.70

27.82%

China Shanghai Composite

13.33%

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)

-2.42%

EBIT Growth (5y)

-162.44%

EBIT to Interest (avg)

1.27

Debt to EBITDA (avg)

17.18

Net Debt to Equity (avg)

1.13

Sales to Capital Employed (avg)

1.97

Tax Ratio

0.30%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.33%

ROE (avg)

5.02%

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

0.84

EV to EBIT

-32.47

EV to EBITDA

23.00

EV to Capital Employed

0.92

EV to Sales

0.47

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.83%

ROE (Latest)

-6.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,928.54 MM

RAW MATERIAL COST(Y)

Fallen by -34,150% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 278.04 MM

NET PROFIT(Q)

Highest at CNY 77.77 MM

EPS(Q)

Highest at CNY 0.01

-8What is not working for the Company

NET SALES(HY)

At CNY 35,573 MM has Grown at -14.29%

CASH AND EQV(HY)

Lowest at CNY 11,866.75 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 13.42 times

Here's what is working for Shandong Iron & Steel Co., Ltd.

Pre-Tax Profit

At CNY 278.04 MM has Grown at 197%

over average net sales of the previous four periods of CNY -286.65 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 77.77 MM has Grown at 124.31%

over average net sales of the previous four periods of CNY -319.92 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 1,928.54 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 278.04 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 77.77 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -34,150% (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 Shandong Iron & Steel Co., Ltd.

Net Sales

At CNY 35,573 MM has Grown at -14.29%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 11,866.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 13.42 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio