Shanxi Lu'An Environmental Energy Development Co., Ltd. (601699) 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 Lu'An Environmental Energy Development Co., Ltd.

Why is Shanxi Lu'An Environmental Energy Development Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.85% and Operating profit at -12.87% over the last 5 years

The company has declared negative results for the last 8 consecutive quarters

The company has declared negative results in Jun 23 after 9 consecutive negative quarters
NET PROFIT(HY) At CNY 308.59 MM has Grown at -84.09%
OPERATING CASH FLOW(Y) Lowest at CNY 4,180.99 MM
ROCE(HY) Lowest at 3.75%

With ROE of 2.65%, it has a expensive valuation with a 0.96 Price to Book Value

Over the past year, while the stock has generated a return of -10.94%, its profits have fallen by -79.4%
At the current price, the company has a high dividend yield of 2.7

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 -10.94% 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 Miscellaneous)

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

Is Shanxi Lu'An Environmental Energy Development Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanxi Lu'An Environmental Energy Development Co., Ltd.

-10.94%

-1.17

34.65%

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)

2.85%

EBIT Growth (5y)

-12.87%

EBIT to Interest (avg)

13.15

Debt to EBITDA (avg)

0.35

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.73

Tax Ratio

36.77%

Dividend Payout Ratio

50.07%

Pledged Shares

Institutional Holding

ROCE (avg)

32.41%

ROE (avg)

16.19%

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

0.96

EV to EBIT

19.33

EV to EBITDA

7.46

EV to Capital Employed

0.96

EV to Sales

1.24

PEG Ratio

Dividend Yield

2.74%

ROCE (Latest)

4.95%

ROE (Latest)

2.65%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 23.93%

-27What is not working for the Company

NET PROFIT(HY)

At CNY 308.59 MM has Grown at -84.09%

OPERATING CASH FLOW(Y)

Lowest at CNY 4,180.99 MM

ROCE(HY)

Lowest at 3.75%

RAW MATERIAL COST(Y)

Grown by 23.41% (YoY

CASH AND EQV(HY)

Lowest at CNY 24,029.23 MM

DEBT-EQUITY RATIO (HY)

Highest at -18.54 %

NET SALES(Q)

Lowest at CNY 6,228.67 MM

Here's what is working for Shanxi Lu'An Environmental Energy Development Co., Ltd.

Inventory Turnover Ratio

Highest at 23.93%

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 Lu'An Environmental Energy Development Co., Ltd.

Net Profit

At CNY 308.59 MM has Grown at -84.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 6,228.67 MM has Fallen at -22.58%

over average net sales of the previous four periods of CNY 8,044.86 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 4,180.99 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)

Net Sales

Lowest at CNY 6,228.67 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 24,029.23 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -18.54 %

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 23.41% (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