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 -1.76%, 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 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 Shanghai Step Electric Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shanghai Step Electric Co., Ltd.

-46.35%

2.79

46.16%

China Shanghai Composite

3.23%

1.20

14.07%

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)

-2.35

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.60

Sales to Capital Employed (avg)

1.26

Tax Ratio

84.20%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.49%

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

1607

Industry P/E

Price to Book Value

8.02

EV to EBIT

-177.45

EV to EBITDA

-5629.62

EV to Capital Employed

5.48

EV to Sales

2.96

PEG Ratio

15.46

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

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

5What is working for the Company

NET PROFIT(9M)

Higher at CNY -10.12 MM

NET SALES(Q)

Highest at CNY 1,025.02 MM

-15What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 44.94 MM

NET PROFIT(Q)

At CNY -3.76 MM has Fallen at -345.77%

INTEREST(Q)

At CNY 6.21 MM has Grown at 18.81%

RAW MATERIAL COST(Y)

Grown by 10.68% (YoY

CASH AND EQV(HY)

Lowest at CNY 831.83 MM

DEBT-EQUITY RATIO (HY)

Highest at 80.22 %

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

Net Sales

Highest at CNY 1,025.02 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Depreciation

Highest at CNY 20.65 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CNY MM)

Depreciation

At CNY 20.65 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (CNY MM)

Here's what is not working for Shanghai Step Electric Co., Ltd.

Net Profit

At CNY -3.76 MM has Fallen at -345.77%

over average net sales of the previous four periods of CNY 1.53 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 44.94 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)

Interest

At CNY 6.21 MM has Grown at 18.81%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 831.83 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 80.22 %

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

Raw Material Cost

Grown by 10.68% (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