Shenzhen Ecobeauty Co., Ltd. (000010) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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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 -10.41% and Operating profit at 0.15% 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 -10.41% and Operating profit at 0.15% over the last 5 years

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

OPERATING CASH FLOW(Y) Highest at CNY 44.29 MM
NET SALES(9M) At CNY 424.68 MM has Grown at 20.03%
NET PROFIT(9M) At CNY -31.9 MM has Grown at 46.32%

With ROE of 38.07%, it has a fair valuation with a 15.86 Price to Book Value

Over the past year, while the stock has generated a return of -5.78%, its profits have risen by 118% ; the PEG ratio of the company is 0.4

Below par performance in long term as well as near term

Along with generating -5.78% 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 hold?

Overall Portfolio exposure to Shenzhen Ecobeauty Co., Ltd. should be less than 10%
Overall Portfolio exposure to Paper, Forest & Jute Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Shenzhen Ecobeauty Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Ecobeauty Co., Ltd.

-12.37%

1.18

57.84%

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)

-10.41%

EBIT Growth (5y)

0.15%

EBIT to Interest (avg)

-0.62

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.58

Sales to Capital Employed (avg)

0.73

Tax Ratio

5.29%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

15.70%

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

Industry P/E

Price to Book Value

15.86

EV to EBIT

32.67

EV to EBITDA

31.60

EV to Capital Employed

3.89

EV to Sales

6.45

PEG Ratio

0.35

Dividend Yield

ROCE (Latest)

11.89%

ROE (Latest)

38.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 44.29 MM

NET SALES(9M)

At CNY 424.68 MM has Grown at 20.03%

NET PROFIT(9M)

At CNY -31.9 MM has Grown at 46.32%

ROCE(HY)

Highest at 16.56%

INVENTORY TURNOVER RATIO(HY)

Highest at 8.19 times

DEBTORS TURNOVER RATIO(HY)

Highest at 0.48 times

-10What is not working for the Company

NET SALES(Q)

At CNY 194.52 MM has Fallen at -18.29%

INTEREST(Q)

At CNY 17.61 MM has Grown at 11.22%

RAW MATERIAL COST(Y)

Grown by 79.38% (YoY

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

Net Profit

At CNY -31.9 MM has Grown at 46.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 44.29 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 8.19 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 0.48 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 Ecobeauty Co., Ltd.

Net Sales

At CNY 194.52 MM has Fallen at -18.29%

over average net sales of the previous four periods of CNY 238.05 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 17.61 MM has Grown at 11.22%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 79.38% (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