Shenzhen Ridge Engineering Consulting Co., Ltd. () 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 Ridge Engineering Consulting Co., Ltd.

Why is Shenzhen Ridge Engineering Consulting Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -4.93% and Operating profit at -100.00% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 9.52% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -4.93% and Operating profit at -100.00% over the last 5 years

INTEREST(HY) At CNY 1.01 MM has Grown at 376.22%
RAW MATERIAL COST(Y) Grown by 14.82% (YoY)
OPERATING PROFIT(Q) Lowest at CNY -10.91 MM

Below par performance in long term as well as near term

Along with generating -12.91% 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 Ridge Engineering Consulting Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

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

Is Shenzhen Ridge Engineering Consulting Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Ridge Engineering Consulting Co., Ltd.

-12.91%

0.29

42.24%

China Shanghai Composite

18.87%

1.36

13.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.93%

EBIT Growth (5y)

-100.00%

EBIT to Interest (avg)

36.94

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

0.34

Tax Ratio

31.32%

Dividend Payout Ratio

76.34%

Pledged Shares

Institutional Holding

ROCE (avg)

17.51%

ROE (avg)

9.52%

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

0.48

EV to EBIT

-101.64

EV to EBITDA

-11.29

EV to Capital Employed

-0.16

EV to Sales

-0.21

PEG Ratio

0.60

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

0.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

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

11What is working for the Company

NET PROFIT(HY)

Higher at CNY -10.34 MM

DEBT-EQUITY RATIO (HY)

Lowest at -54.23 %

DEBTORS TURNOVER RATIO(HY)

Highest at 1.88 times

NET SALES(Q)

At CNY 98.59 MM has Grown at 30.54%

-21What is not working for the Company

INTEREST(HY)

At CNY 1.01 MM has Grown at 376.22%

RAW MATERIAL COST(Y)

Grown by 14.82% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -10.91 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -11.07 %

PRE-TAX PROFIT(Q)

Lowest at CNY -8.45 MM

NET PROFIT(Q)

Lowest at CNY -8.95 MM

EPS(Q)

Lowest at CNY -0.02

Here's what is working for Shenzhen Ridge Engineering Consulting Co., Ltd.

Net Sales

At CNY 98.59 MM has Grown at 30.54%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at -54.23 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 1.88 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 Ridge Engineering Consulting Co., Ltd.

Interest

At CNY 1.01 MM has Grown at 376.22%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -8.45 MM has Fallen at -551.66%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -8.95 MM has Fallen at -760.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -10.91 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -11.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -8.45 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 -8.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 14.82% (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