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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shanxi Blue Flame Holding Co., Ltd.

Why is Shanxi Blue Flame Holding 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 6.32% and Operating profit at -1.26% 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 7.27% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.32% and Operating profit at -1.26% over the last 5 years

NET SALES(HY) At CNY 1,011.08 MM has Grown at -16.87%
INTEREST COVERAGE RATIO(Q) Lowest at 398.74
RAW MATERIAL COST(Y) Grown by 23.71% (YoY)

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?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shanxi Blue Flame Holding Co., Ltd.

-0.58%

0.46

28.37%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.32%

EBIT Growth (5y)

-1.26%

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

6.68%

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

1.08

EV to EBIT

30.20

EV to EBITDA

9.38

EV to Capital Employed

1.06

EV to Sales

4.08

PEG Ratio

4.33

Dividend Yield

0.44%

ROCE (Latest)

3.50%

ROE (Latest)

7.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,236.83 MM

CASH AND EQV(HY)

Highest at CNY 4,029.88 MM

DEBT-EQUITY RATIO (HY)

Lowest at 41.54 %

INVENTORY TURNOVER RATIO(HY)

Highest at 67.5%

PRE-TAX PROFIT(Q)

Highest at CNY 220.48 MM

NET PROFIT(Q)

Highest at CNY 184.62 MM

EPS(Q)

Highest at CNY 0.19

-9What is not working for the Company

NET SALES(HY)

At CNY 1,011.08 MM has Grown at -16.87%

INTEREST COVERAGE RATIO(Q)

Lowest at 398.74

RAW MATERIAL COST(Y)

Grown by 23.71% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.37%

OPERATING PROFIT(Q)

Lowest at CNY 111.15 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 20.05 %

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

Operating Cash Flow

Highest at CNY 1,236.83 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 220.48 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 184.62 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.19

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 4,029.88 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 41.54 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 67.5%

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 Shanxi Blue Flame Holding Co., Ltd.

Net Sales

At CNY 1,011.08 MM has Grown at -16.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 398.74

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 111.15 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 20.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 1.37%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 23.71% (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