Shanxi Taigang Stainless Steel Co., Ltd. (000825) 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 Taigang Stainless Steel Co., Ltd.

Why is Shanxi Taigang Stainless Steel Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.06%

The company has been able to generate a Return on Capital Employed (avg) of 4.06% 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 4.13% and Operating profit at -170.25% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 5.10% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.13% and Operating profit at -170.25% over the last 5 years

Negative results in Mar 26

NET PROFIT(HY) At CNY -496.33 MM has Grown at -107.86%
OPERATING CASH FLOW(Y) Lowest at CNY 2,743.8 MM
NET SALES(9M) At CNY 66,621.96 MM has Grown at -9.94%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -9.90%, its profits have risen by 88.6%

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 Ferrous Metals)

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

Is Shanxi Taigang Stainless Steel Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanxi Taigang Stainless Steel Co., Ltd.

-12.56%

-0.14

35.11%

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)

4.13%

EBIT Growth (5y)

-170.25%

EBIT to Interest (avg)

-2.89

Debt to EBITDA (avg)

4.67

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

1.87

Tax Ratio

26.78%

Dividend Payout Ratio

98.90%

Pledged Shares

Institutional Holding

ROCE (avg)

2.37%

ROE (avg)

5.10%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.60

EV to EBIT

-43.74

EV to EBITDA

16.22

EV to Capital Employed

0.70

EV to Sales

0.34

PEG Ratio

Dividend Yield

0.26%

ROCE (Latest)

-1.60%

ROE (Latest)

-0.27%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

Mildly 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

11What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 174.54 MM has Grown at 467.73%

NET PROFIT(Q)

At CNY 115.3 MM has Grown at 496.78%

DEBT-EQUITY RATIO (HY)

Lowest at 34.96 %

NET SALES(Q)

Highest at CNY 25,225.65 MM

OPERATING PROFIT(Q)

Highest at CNY 921.7 MM

-14What is not working for the Company

NET PROFIT(HY)

At CNY 135.48 MM has Grown at -65.53%

OPERATING CASH FLOW(Y)

Lowest at CNY 2,357.81 MM

INTEREST(Q)

At CNY 40.4 MM has Grown at 55.05%

RAW MATERIAL COST(Y)

Grown by 62.28% (YoY

CASH AND EQV(HY)

Lowest at CNY 11,432.4 MM

Here's what is working for Shanxi Taigang Stainless Steel Co., Ltd.

Pre-Tax Profit

At CNY 174.54 MM has Grown at 467.73%

over average net sales of the previous four periods of CNY -47.46 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 115.3 MM has Grown at 496.78%

over average net sales of the previous four periods of CNY -29.06 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 25,225.65 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 921.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Debt-Equity Ratio

Lowest at 34.96 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Depreciation

Highest at CNY 870.72 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 870.72 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 Shanxi Taigang Stainless Steel Co., Ltd.

Interest

At CNY 40.4 MM has Grown at 55.05%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 2,357.81 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 11,432.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 62.28% (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