Shanghai Environment Group Co., Ltd. (601200) 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

Shanghai Environment Group Co., Ltd.

Why is Shanghai Environment Group Co., Ltd. ?

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 8.80% and Operating profit at 1.86% 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 6.89% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.80% and Operating profit at 1.86% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 1,304.65 MM
DEBTORS TURNOVER RATIO(HY) Lowest at 1.47 times
RAW MATERIAL COST(Y) Grown by 11.07% (YoY)

With ROE of 5.95%, it has a very attractive valuation with a 0.94 Price to Book Value

Over the past year, while the stock has generated a return of 7.22%, its profits have fallen by -0.2%
At the current price, the company has a high dividend yield of 0.9

Underperformed the market in the last 1 year

The stock has generated a return of 7.22% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Miscellaneous)

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

Is Shanghai Environment Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Environment Group Co., Ltd.

2.15%

0.99

17.00%

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)

8.80%

EBIT Growth (5y)

1.86%

EBIT to Interest (avg)

3.54

Debt to EBITDA (avg)

5.40

Net Debt to Equity (avg)

0.81

Sales to Capital Employed (avg)

0.30

Tax Ratio

18.01%

Dividend Payout Ratio

23.40%

Pledged Shares

Institutional Holding

ROCE (avg)

5.69%

ROE (avg)

6.89%

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

0.94

EV to EBIT

19.22

EV to EBITDA

12.63

EV to Capital Employed

0.97

EV to Sales

3.16

PEG Ratio

Dividend Yield

0.85%

ROCE (Latest)

5.03%

ROE (Latest)

5.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Bullish

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

INVENTORY TURNOVER RATIO(HY)

Highest at 21.32 times

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,304.65 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.47 times

RAW MATERIAL COST(Y)

Grown by 11.07% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 287.82 MM

Here's what is working for Shanghai Environment Group Co., Ltd.

Inventory Turnover Ratio

Highest at 21.32 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shanghai Environment Group Co., Ltd.

Operating Cash Flow

Lowest at CNY 1,304.65 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Lowest at 1.47 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY 287.82 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Raw Material Cost

Grown by 11.07% (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