ScoreWhy is Shandong Linglong Tyre Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 5.01%
- The company has been able to generate a Return on Capital Employed (avg) of 5.01% signifying low profitability per unit of total capital (equity and debt)
2
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 4.81% and Operating profit at -15.75% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 6.53% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 4.81% and Operating profit at -15.75% over the last 5 years
4
The company has declared Negative results for the last 3 consecutive quarters
- PRE-TAX PROFIT(Q) At CNY 84.24 MM has Fallen at -71.5%
- NET PROFIT(Q) At CNY 67.85 MM has Fallen at -74.09%
- INTEREST(HY) At CNY 157.68 MM has Grown at 6.92%
5
With ROE of 4.59%, it has a very expensive valuation with a 0.65 Price to Book Value
- Over the past year, while the stock has generated a return of -32.82%, its profits have fallen by -36.7%
- At the current price, the company has a high dividend yield of 3.8
Real-Time Research ReportHow 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 Shandong Linglong Tyre Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Shandong Linglong Tyre Co., Ltd.
-32.02%
-2.36
19.92%
China Shanghai Composite
3.23%
0.23
14.72%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.81%
EBIT Growth (5y)
-15.75%
EBIT to Interest (avg)
3.81
Debt to EBITDA (avg)
4.53
Net Debt to Equity (avg)
0.57
Sales to Capital Employed (avg)
0.60
Tax Ratio
10.60%
Dividend Payout Ratio
23.20%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
3.22%
ROE (avg)
6.53%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
14
Industry P/E
Price to Book Value
0.65
EV to EBIT
23.59
EV to EBITDA
10.41
EV to Capital Employed
0.77
EV to Sales
1.05
PEG Ratio
NA
Dividend Yield
3.81%
ROCE (Latest)
3.26%
ROE (Latest)
4.59%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 3,325.2 MM
DIVIDEND PAYOUT RATIO(Y)
Highest at 117.65%
DEBT-EQUITY RATIO
(HY)
Lowest at 48.34 %
INVENTORY TURNOVER RATIO(HY)
Highest at 3.72 times
NET SALES(Q)
Highest at CNY 6,675.87 MM
-23What is not working for the Company
PRE-TAX PROFIT(Q)
At CNY 84.24 MM has Fallen at -71.5%
NET PROFIT(Q)
At CNY 67.85 MM has Fallen at -74.09%
INTEREST(HY)
At CNY 157.68 MM has Grown at 6.92%
ROCE(HY)
Lowest at 2.71%
INTEREST COVERAGE RATIO(Q)
Lowest at 821.5
RAW MATERIAL COST(Y)
Grown by 10.1% (YoY
DEBTORS TURNOVER RATIO(HY)
Lowest at 4.28 times
OPERATING PROFIT MARGIN(Q)
Lowest at 9.71 %
Here's what is working for Shandong Linglong Tyre Co., Ltd.
Operating Cash Flow
Highest at CNY 3,325.2 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Sales
Highest at CNY 6,675.87 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Debt-Equity Ratio
Lowest at 48.34 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Inventory Turnover Ratio
Highest at 3.72 times
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Dividend Payout Ratio
Highest at 117.65%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Shandong Linglong Tyre Co., Ltd.
Pre-Tax Profit
At CNY 84.24 MM has Fallen at -71.5%
over average net sales of the previous four periods of CNY 295.55 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (CNY MM)
Net Profit
At CNY 67.85 MM has Fallen at -74.09%
over average net sales of the previous four periods of CNY 261.86 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Interest Coverage Ratio
Lowest at 821.5
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Interest
At CNY 157.68 MM has Grown at 6.92%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Profit Margin
Lowest at 9.71 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debtors Turnover Ratio
Lowest at 4.28 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
Raw Material Cost
Grown by 10.1% (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
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