Shenzhen Strongteam Decoration Engineering Co., Ltd. (002989) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Shenzhen Strongteam Decoration Engineering Co., Ltd.

Why is Shenzhen Strongteam Decoration Engineering Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 6.46%

The company has been able to generate a Return on Capital Employed (avg) of 6.46% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -34.16% and Operating profit at -205.92% over the last 5 years

The company has declared Negative results for the last 16 consecutive quarters

NET PROFIT(HY) At CNY -314.93 MM has Grown at -639.25%
ROCE(HY) Lowest at -26.32%
RAW MATERIAL COST(Y) Grown by 43.62% (YoY)

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 12.11%, its profits have fallen by -464.8%
At the current price, the company has a high dividend yield of 0

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 Construction)

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

Is Shenzhen Strongteam Decoration Engineering Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Strongteam Decoration Engineering Co., Ltd.

2.42%

1.53

47.27%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-34.16%

EBIT Growth (5y)

-205.92%

EBIT to Interest (avg)

5.26

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.33

Tax Ratio

0.80%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.46%

ROE (avg)

4.31%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.15

EV to EBIT

-9.05

EV to EBITDA

-9.62

EV to Capital Employed

2.41

EV to Sales

10.54

PEG Ratio

Dividend Yield

ROCE (Latest)

-26.66%

ROE (Latest)

-26.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

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

9What is working for the Company

OPERATING PROFIT(Q)

Highest at CNY 5.34 MM

OPERATING PROFIT MARGIN(Q)

Highest at 10.6 %

PRE-TAX PROFIT(Q)

Highest at CNY 5.95 MM

NET PROFIT(Q)

Highest at CNY 3.91 MM

EPS(Q)

Highest at CNY 0.02

-23What is not working for the Company

NET PROFIT(HY)

At CNY -314.93 MM has Grown at -639.25%

ROCE(HY)

Lowest at -26.32%

RAW MATERIAL COST(Y)

Grown by 43.62% (YoY

NET SALES(Q)

Lowest at CNY 50.4 MM

Here's what is working for Shenzhen Strongteam Decoration Engineering Co., Ltd.

Pre-Tax Profit

At CNY 5.95 MM has Grown at 151.47%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 3.91 MM has Grown at 146.15%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Profit

Highest at CNY 5.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 10.6 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 5.95 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 3.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Shenzhen Strongteam Decoration Engineering Co., Ltd.

Net Sales

At CNY 50.4 MM has Fallen at -42.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 50.4 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Raw Material Cost

Grown by 43.62% (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