Shanghai Step Electric Co., Ltd. (002527) 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 Step Electric Co., Ltd.

Why is Shanghai Step Electric Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.49%

The company has been able to generate a Return on Capital Employed (avg) of 1.49% 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 -2.99% and Operating profit at -181.31% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 1.85% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.99% and Operating profit at -181.31% over the last 5 years

Flat results in Mar 26

PRE-TAX PROFIT(Q) At CNY -4.37 MM has Fallen at -308.19%
NET PROFIT(Q) At CNY -7.51 MM has Fallen at -645.61%
OPERATING CASH FLOW(Y) Lowest at CNY 11 MM

With ROE of 0.50%, it has a fair valuation with a 6.79 Price to Book Value

Over the past year, while the stock has generated a return of -0.07%, its profits have risen by 103.9% ; the PEG ratio of the company is 13.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shanghai Step Electric Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shanghai Step Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Step Electric Co., Ltd.

-0.07%

2.92

45.15%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.99%

EBIT Growth (5y)

-181.31%

EBIT to Interest (avg)

-1.43

Debt to EBITDA (avg)

2.95

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

1.26

Tax Ratio

5.43%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.49%

ROE (avg)

1.85%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

1360

Industry P/E

Price to Book Value

6.79

EV to EBIT

-152.04

EV to EBITDA

-4823.43

EV to Capital Employed

4.69

EV to Sales

2.53

PEG Ratio

13.09

Dividend Yield

ROCE (Latest)

-3.09%

ROE (Latest)

0.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

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

13What is working for the Company

NET PROFIT(HY)

Higher at CNY -6.35 MM

ROCE(HY)

Highest at 0.49%

RAW MATERIAL COST(Y)

Fallen by -15.9% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.16 times

-11What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -4.37 MM has Fallen at -308.19%

NET PROFIT(Q)

At CNY -7.51 MM has Fallen at -645.61%

OPERATING CASH FLOW(Y)

Lowest at CNY 11 MM

CASH AND EQV(HY)

Lowest at CNY 862.47 MM

OPERATING PROFIT(Q)

Lowest at CNY -22.46 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.59 %

Here's what is working for Shanghai Step Electric Co., Ltd.

Inventory Turnover Ratio

Highest at 3.16 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -15.9% (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 Step Electric Co., Ltd.

Pre-Tax Profit

At CNY -4.37 MM has Fallen at -308.19%

over average net sales of the previous four periods of CNY 2.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -7.51 MM has Fallen at -645.61%

over average net sales of the previous four periods of CNY 1.38 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 11 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY -22.46 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 862.47 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents