Shenzhen SED Industry Co., Ltd. (000032) 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 SED Industry Co., Ltd.

Why is Shenzhen SED 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 106.04% and Operating profit at 38.14% 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 16.52% signifying low profitability per unit of shareholders funds
DEBTORS TURNOVER RATIO(HY) Lowest at 1.22 times
RAW MATERIAL COST(Y) Grown by 39% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 168.12 %

With ROE of 11.01%, it has a very expensive valuation with a 3.93 Price to Book Value

Over the past year, while the stock has generated a return of -27.36%, its profits have fallen by -21.7%
At the current price, the company has a high dividend yield of 0.3

Below par performance in long term as well as near term

Along with generating -27.36% 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 Electronics & Appliances)

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

Is Shenzhen SED Industry Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Shenzhen SED Industry Co., Ltd.

-23.26%

0.27

45.90%

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)

106.04%

EBIT Growth (5y)

38.14%

EBIT to Interest (avg)

4.10

Debt to EBITDA (avg)

2.72

Net Debt to Equity (avg)

1.05

Sales to Capital Employed (avg)

2.59

Tax Ratio

36.60%

Dividend Payout Ratio

41.41%

Pledged Shares

Institutional Holding

ROCE (avg)

22.09%

ROE (avg)

16.52%

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

3.93

EV to EBIT

35.61

EV to EBITDA

20.31

EV to Capital Employed

2.18

EV to Sales

0.59

PEG Ratio

Dividend Yield

0.31%

ROCE (Latest)

6.12%

ROE (Latest)

11.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly 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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-36What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.22 times

RAW MATERIAL COST(Y)

Grown by 39% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 168.12 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 33.68 times

NET SALES(Q)

Lowest at CNY 9,584.34 MM

OPERATING PROFIT(Q)

Lowest at CNY -252.13 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.63 %

PRE-TAX PROFIT(Q)

Lowest at CNY -248.48 MM

NET PROFIT(Q)

Lowest at CNY -201.33 MM

EPS(Q)

Lowest at CNY -0.18

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

Net Sales

At CNY 9,584.34 MM has Fallen at -36.83%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -248.48 MM has Fallen at -834.43%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -201.33 MM has Fallen at -126.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 1.22 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 9,584.34 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -252.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -248.48 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 -201.33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.18

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 168.12 %

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

Inventory Turnover Ratio

Lowest at 33.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 39% (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