Shenma Industry Co., Ltd. (600810) 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

Shenma Industry Co., Ltd.

Why is Shenma Industry 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 3.30% and Operating profit at -16.71% 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 8.58% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 3.30% and Operating profit at -16.71% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 289.6 MM
PRE-TAX PROFIT(Q) At CNY 12.63 MM has Fallen at -77.88%
NET PROFIT(Q) At CNY -17.86 MM has Fallen at -313.01%

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 1.83%, its profits have fallen by -90.9%

Underperformed the market in the last 1 year

The stock has generated a return of 1.83% in the last 1 year, much lower than market (China Shanghai Composite) returns of 14.77%

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 Shenma Industry Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shenma Industry Co., Ltd.

1.83%

0.47

44.09%

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)

3.30%

EBIT Growth (5y)

-16.71%

EBIT to Interest (avg)

3.70

Debt to EBITDA (avg)

6.60

Net Debt to Equity (avg)

1.44

Sales to Capital Employed (avg)

0.54

Tax Ratio

50.52%

Dividend Payout Ratio

154.80%

Pledged Shares

Institutional Holding

ROCE (avg)

10.40%

ROE (avg)

8.58%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

452

Industry P/E

Price to Book Value

1.35

EV to EBIT

341.32

EV to EBITDA

41.65

EV to Capital Employed

1.16

EV to Sales

1.51

PEG Ratio

Dividend Yield

0.48%

ROCE (Latest)

0.34%

ROE (Latest)

0.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 289.6 MM

PRE-TAX PROFIT(Q)

At CNY 12.63 MM has Fallen at -77.88%

NET PROFIT(Q)

At CNY -17.86 MM has Fallen at -313.01%

INTEREST COVERAGE RATIO(Q)

Lowest at 40.21

RAW MATERIAL COST(Y)

Grown by 19.86% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 146.19 %

OPERATING PROFIT(Q)

Lowest at CNY 30.58 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.95 %

Here's what is not working for Shenma Industry Co., Ltd.

Pre-Tax Profit

At CNY 12.63 MM has Fallen at -77.88%

over average net sales of the previous four periods of CNY 57.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -17.86 MM has Fallen at -313.01%

over average net sales of the previous four periods of CNY 8.38 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 289.6 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)

Interest Coverage Ratio

Lowest at 40.21

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 30.58 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 146.19 %

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 19.86% (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

Non Operating Income

Highest at CNY 4.6 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income