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 7.37% and Operating profit at -180.39% 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 7.37% and Operating profit at -180.39% over the last 5 years

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 16.99%, its profits have fallen by -40.6%

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.

21.11%

0.51

33.76%

China Shanghai Composite

24.7%

1.93

12.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.37%

EBIT Growth (5y)

-180.39%

EBIT to Interest (avg)

-1.06

Debt to EBITDA (avg)

4.76

Net Debt to Equity (avg)

0.37

Sales to Capital Employed (avg)

1.89

Tax Ratio

3.91%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.06%

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

0.67

EV to EBIT

-26.16

EV to EBITDA

15.65

EV to Capital Employed

0.75

EV to Sales

0.35

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.88%

ROE (Latest)

-2.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

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

17What is working for the Company

ROCE(HY)

Highest at 0.43%

PRE-TAX PROFIT(Q)

At CNY 150.01 MM has Grown at 176.75%

NET PROFIT(Q)

At CNY 175.04 MM has Grown at 196.31%

RAW MATERIAL COST(Y)

Fallen by -163.59% (YoY

-10What is not working for the Company

NET SALES(Q)

Lowest at CNY 22,036.85 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 31.52 times

OPERATING PROFIT(Q)

Lowest at CNY -34.62 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.16 %

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

Pre-Tax Profit

At CNY 150.01 MM has Grown at 176.75%

over average net sales of the previous four periods of CNY -195.46 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 175.04 MM has Grown at 196.31%

over average net sales of the previous four periods of CNY -181.76 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -163.59% (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 Taigang Stainless Steel Co., Ltd.

Net Sales

Lowest at CNY 22,036.85 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Net Sales

At CNY 22,036.85 MM has Fallen at -8.78%

over average net sales of the previous four periods of CNY 24,158.06 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -34.62 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.16 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 31.52 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 1.55 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income