Shanghai Material Trading Co., Ltd. (600822) 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

Shanghai Material Trading Co., Ltd.

Why is Shanghai Material Trading 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 -17.16% and Operating profit at -205.81% 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 10.23% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -17.16% and Operating profit at -205.81% over the last 5 years

With a fall in PBT of -13.18%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 5 consecutive quarters
NET SALES(Q) At CNY 469.35 MM has Fallen at -58.36%
OPERATING CASH FLOW(Y) Lowest at CNY -70 MM
PRE-TAX PROFIT(Q) At CNY 6.07 MM has Fallen at -47.05%

With ROE of 1.99%, it has a very expensive valuation with a 3.68 Price to Book Value

Over the past year, while the stock has generated a return of -9.72%, its profits have risen by 486.3% ; the PEG ratio of the company is 0.4

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.72% returns

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 Trading & Distributors)

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

Is Shanghai Material Trading Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Material Trading Co., Ltd.

-9.72%

0.70

49.06%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-17.16%

EBIT Growth (5y)

-205.81%

EBIT to Interest (avg)

0.57

Debt to EBITDA (avg)

4.04

Net Debt to Equity (avg)

-0.67

Sales to Capital Employed (avg)

2.47

Tax Ratio

38.86%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.52%

ROE (avg)

10.23%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

185

Industry P/E

Price to Book Value

3.68

EV to EBIT

-65.48

EV to EBITDA

988.49

EV to Capital Employed

10.97

EV to Sales

1.31

PEG Ratio

0.38

Dividend Yield

ROCE (Latest)

-16.76%

ROE (Latest)

1.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -89.97% (YoY

NET PROFIT(9M)

Higher at CNY 30.15 MM

DEBT-EQUITY RATIO (HY)

Lowest at -57.47 %

-21What is not working for the Company

NET SALES(Q)

At CNY 469.35 MM has Fallen at -58.36%

OPERATING CASH FLOW(Y)

Lowest at CNY -70 MM

PRE-TAX PROFIT(Q)

At CNY 6.07 MM has Fallen at -47.05%

NET PROFIT(Q)

At CNY 6.74 MM has Fallen at -46.64%

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 22.74%

Here's what is working for Shanghai Material Trading Co., Ltd.

Debt-Equity Ratio

Lowest at -57.47 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -89.97% (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 Shanghai Material Trading Co., Ltd.

Net Sales

At CNY 469.35 MM has Fallen at -58.36%

over average net sales of the previous four periods of CNY 1,127.21 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 6.07 MM has Fallen at -47.05%

over average net sales of the previous four periods of CNY 11.47 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 6.74 MM has Fallen at -46.64%

over average net sales of the previous four periods of CNY 12.63 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -70 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 22.74%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio