Shanxi Blue Flame Holding Co., Ltd. (000968) 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

Shanxi Blue Flame Holding Co., Ltd.

Why is Shanxi Blue Flame Holding Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.03% and Operating profit at 14.84% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.27% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.03% and Operating profit at 14.84% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At CNY 214.56 MM has Grown at -32.4%
ROCE(HY) Lowest at 4.76%
INTEREST COVERAGE RATIO(Q) Lowest at 419.8

Below par performance in long term as well as near term

Along with generating -17.78% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Other Industrial Products)

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

Is Shanxi Blue Flame Holding Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanxi Blue Flame Holding Co., Ltd.

-19.05%

-0.04

50.52%

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)

6.03%

EBIT Growth (5y)

14.84%

EBIT to Interest (avg)

3.01

Debt to EBITDA (avg)

2.78

Net Debt to Equity (avg)

0.40

Sales to Capital Employed (avg)

0.23

Tax Ratio

9.11%

Dividend Payout Ratio

14.44%

Pledged Shares

Institutional Holding

ROCE (avg)

4.84%

ROE (avg)

7.27%

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

1.12

EV to EBIT

34.27

EV to EBITDA

12.15

EV to Capital Employed

1.09

EV to Sales

4.64

PEG Ratio

Dividend Yield

0.41%

ROCE (Latest)

3.17%

ROE (Latest)

4.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.49% (YoY

-19What is not working for the Company

NET PROFIT(HY)

At CNY 214.56 MM has Grown at -32.4%

ROCE(HY)

Lowest at 4.76%

INTEREST COVERAGE RATIO(Q)

Lowest at 419.8

CASH AND EQV(HY)

Lowest at CNY 2,755.86 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.29 times

NET SALES(Q)

Lowest at CNY 481.29 MM

OPERATING PROFIT(Q)

Lowest at CNY 82.48 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 17.14 %

Here's what is working for Shanxi Blue Flame Holding Co., Ltd.

Raw Material Cost

Fallen by -1.49% (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 Shanxi Blue Flame Holding Co., Ltd.

Interest Coverage Ratio

Lowest at 419.8

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 214.56 MM has Grown at -32.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 481.29 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -13.19%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 82.48 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 17.14 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 2,755.86 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 1.29 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CNY 0.63 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income