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

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 -33.49% and Operating profit at -190.09% over the last 5 years

Flat results in Mar 26

PRE-TAX PROFIT(Q) At CNY -3.94 MM has Fallen at -166.32%
NET PROFIT(Q) At CNY -8.65 MM has Fallen at -320.98%
INTEREST(Q) At CNY 4.1 MM has Grown at inf%

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 15.47%, its profits have risen by 53.7%
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.

14.46%

2.73

54.66%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-33.49%

EBIT Growth (5y)

-190.09%

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)

0.21

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

4.09

EV to EBIT

-42.74

EV to EBITDA

-48.41

EV to Capital Employed

5.69

EV to Sales

15.57

PEG Ratio

Dividend Yield

ROCE (Latest)

-13.31%

ROE (Latest)

-13.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

14What is working for the Company

NET SALES(HY)

At CNY 184.84 MM has Grown at 32.78%

NET PROFIT(HY)

Higher at CNY -112.52 MM

RAW MATERIAL COST(Y)

Fallen by -553.95% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -33.65 %

DEBTORS TURNOVER RATIO(HY)

Highest at 0.7 times

-13What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -3.94 MM has Fallen at -166.32%

NET PROFIT(Q)

At CNY -8.65 MM has Fallen at -320.98%

INTEREST(Q)

At CNY 4.1 MM has Grown at inf%

CASH AND EQV(HY)

Lowest at CNY 1,433.42 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 44.36 times

NET SALES(Q)

Lowest at CNY 44.72 MM

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

Debt-Equity Ratio

Lowest at -33.65 %

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 0.7 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -553.95% (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 Strongteam Decoration Engineering Co., Ltd.

Pre-Tax Profit

At CNY -3.94 MM has Fallen at -166.32%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -8.65 MM has Fallen at -320.98%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 4.1 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 44.72 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -13.67%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 1,433.42 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 44.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio