Shenzhen Ecobeauty Co., Ltd. (000010) 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 Ecobeauty Co., Ltd.

Why is Shenzhen Ecobeauty Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -16.22% and Operating profit at -21.08% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 9.71% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -16.22% and Operating profit at -21.08% over the last 5 years

Negative results in Mar 26

NET PROFIT(HY) At CNY 24.41 MM has Grown at -65.74%
INTEREST(HY) At CNY 50.08 MM has Grown at 45.57%
NET SALES(Q) At CNY 105.59 MM has Fallen at -33.4%

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 -37.46%, its profits have fallen by -81.8%

Below par performance in long term as well as near term

Along with generating -37.46% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Paper, Forest & Jute Products)

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

Is Shenzhen Ecobeauty Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shenzhen Ecobeauty Co., Ltd.

-64.88%

0.33

63.21%

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)

-16.22%

EBIT Growth (5y)

-21.08%

EBIT to Interest (avg)

-0.93

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

0.85

Tax Ratio

57.23%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

12.43%

ROE (avg)

9.71%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

154

Industry P/E

Price to Book Value

6.95

EV to EBIT

41.82

EV to EBITDA

38.91

EV to Capital Employed

4.92

EV to Sales

3.40

PEG Ratio

Dividend Yield

ROCE (Latest)

11.76%

ROE (Latest)

4.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 27.95 MM

NET PROFIT(HY)

Higher at CNY -17.01 MM

RAW MATERIAL COST(Y)

Fallen by -57.83% (YoY

-36What is not working for the Company

INTEREST(Q)

At CNY 23.03 MM has Grown at 11.86%

NET SALES(Q)

Lowest at CNY 90.03 MM

OPERATING PROFIT(Q)

Lowest at CNY -42 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -46.66 %

PRE-TAX PROFIT(Q)

Lowest at CNY -66.3 MM

NET PROFIT(Q)

Lowest at CNY -44.08 MM

EPS(Q)

Lowest at CNY -0.04

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

Operating Cash Flow

Highest at CNY 27.95 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)

Raw Material Cost

Fallen by -57.83% (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 Shenzhen Ecobeauty Co., Ltd.

Net Sales

At CNY 90.03 MM has Fallen at -44.28%

over average net sales of the previous four periods of CNY 161.58 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -66.3 MM has Fallen at -951.69%

over average net sales of the previous four periods of CNY 7.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -44.08 MM has Fallen at -10,285.43%

over average net sales of the previous four periods of CNY -0.42 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 23.03 MM has Grown at 11.86%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 90.03 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -46.66 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -66.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -44.08 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)