Shenzhen Airport Co., Ltd. (000089) 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

Shenzhen Airport Co., Ltd.

Why is Shenzhen Airport Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.51%

The company has been able to generate a Return on Capital Employed (avg) of 2.51% signifying low profitability per unit of total capital (equity and debt)

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 10.22% and Operating profit at 81.82% 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 2.29% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.22% and Operating profit at 81.82% over the last 5 years

With ROE of 5.00%, it has a very expensive valuation with a 1.25 Price to Book Value

Over the past year, while the stock has generated a return of -2.38%, its profits have fallen by -9%
At the current price, the company has a high dividend yield of 1.7

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 Transport Services)

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

Is Shenzhen Airport Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Airport Co., Ltd.

-1.49%

-0.23

17.84%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.22%

EBIT Growth (5y)

81.82%

EBIT to Interest (avg)

1.05

Debt to EBITDA (avg)

3.50

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

0.29

Tax Ratio

26.40%

Dividend Payout Ratio

55.56%

Pledged Shares

Institutional Holding

ROCE (avg)

2.51%

ROE (avg)

2.29%

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

1.25

EV to EBIT

14.63

EV to EBITDA

7.02

EV to Capital Employed

1.26

EV to Sales

2.79

PEG Ratio

Dividend Yield

1.73%

ROCE (Latest)

8.60%

ROE (Latest)

5.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

12What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,956.37 MM

DEBT-EQUITY RATIO (HY)

Lowest at 47.65 %

CASH AND EQV(HY)

Highest at CNY 8,651.01 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.19 times

NET SALES(Q)

Highest at CNY 1,311.37 MM

NET PROFIT(Q)

Highest at CNY 161.43 MM

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 256.71

RAW MATERIAL COST(Y)

Grown by 5.63% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 223.07 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 17.01 %

Here's what is working for Shenzhen Airport Co., Ltd.

Operating Cash Flow

Highest at CNY 1,956.37 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)

Debt-Equity Ratio

Lowest at 47.65 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Net Sales

Highest at CNY 1,311.37 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 161.43 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 8,651.01 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 5.19 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Shenzhen Airport Co., Ltd.

Interest Coverage Ratio

Lowest at 256.71

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 223.07 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 17.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 5.63% (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 0.2 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income