Shandong Swan Cotton Industrial Machinery Stock Co., Ltd. (603029) 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 Swan Cotton Industrial Machinery Stock Co., Ltd.

Why is Shandong Swan Cotton Industrial Machinery Stock Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.29%

The company has been able to generate a Return on Capital Employed (avg) of 4.29% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 17.56% and Operating profit at 44.60% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.72% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 17.56% and Operating profit at 44.60% over the last 5 years

Negative results in Jun 26

DEBT-EQUITY RATIO (HY) Highest at 10.83 %
INTEREST(Q) Highest at CNY 1.32 MM

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.87% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Industrial Manufacturing)

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

Is Shandong Swan Cotton Industrial Machinery Stock Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shandong Swan Cotton Industrial Machinery Stock Co., Ltd.

-5.64%

0.49

36.44%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.56%

EBIT Growth (5y)

44.60%

EBIT to Interest (avg)

12.60

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

-0.05

Sales to Capital Employed (avg)

0.80

Tax Ratio

9.38%

Dividend Payout Ratio

30.08%

Pledged Shares

Institutional Holding

ROCE (avg)

5.44%

ROE (avg)

5.72%

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

1.80

EV to EBIT

31.00

EV to EBITDA

19.70

EV to Capital Employed

1.79

EV to Sales

1.72

PEG Ratio

3.25

Dividend Yield

1.30%

ROCE (Latest)

5.77%

ROE (Latest)

7.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.86% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.68 times

OPERATING PROFIT MARGIN(Q)

Highest at 14.62 %

-12What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 10.83 %

INTEREST(Q)

Highest at CNY 1.32 MM

Here's what is working for Shandong Swan Cotton Industrial Machinery Stock Co., Ltd.

Operating Profit Margin

Highest at 14.62 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Debtors Turnover Ratio

Highest at 3.68 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -7.86% (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 Swan Cotton Industrial Machinery Stock Co., Ltd.

Interest

At CNY 1.32 MM has Grown at 33.41%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 1.32 MM

in the last five periods and Increased by 33.41% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 10.83 %

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