Shenzhen Tagen Group Co., Ltd. (000090) 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 Tagen Group Co., Ltd.

Why is Shenzhen Tagen Group Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 6.69% and Operating profit at -26.68% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 12.51% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.69% and Operating profit at -26.68% over the last 5 years

The company has declared negative results for the last 10 consecutive quarters

INTEREST(HY) At CNY 188.24 MM has Grown at 12.67%
ROCE(HY) Lowest at 1.41%
INTEREST COVERAGE RATIO(Q) Lowest at 55.33

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 -4.03%, its profits have fallen by -107.2%
At the current price, the company has a high dividend yield of 3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.03% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Furniture, Home Furnishing)

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

Is Shenzhen Tagen Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shenzhen Tagen Group Co., Ltd.

-3.46%

-0.62

35.18%

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)

6.69%

EBIT Growth (5y)

-26.68%

EBIT to Interest (avg)

6.46

Debt to EBITDA (avg)

4.92

Net Debt to Equity (avg)

1.00

Sales to Capital Employed (avg)

0.70

Tax Ratio

42.13%

Dividend Payout Ratio

30.10%

Pledged Shares

Institutional Holding

ROCE (avg)

9.76%

ROE (avg)

12.51%

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

0.56

EV to EBIT

37.48

EV to EBITDA

19.96

EV to Capital Employed

0.78

EV to Sales

0.75

PEG Ratio

Dividend Yield

2.98%

ROCE (Latest)

2.08%

ROE (Latest)

-0.34%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 1.11 times

NET SALES(Q)

At CNY 3,689.86 MM has Grown at 27.89%

-30What is not working for the Company

INTEREST(HY)

At CNY 188.24 MM has Grown at 12.67%

ROCE(HY)

Lowest at 1.41%

INTEREST COVERAGE RATIO(Q)

Lowest at 55.33

RAW MATERIAL COST(Y)

Grown by 43.23% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 40.56 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.1 %

PRE-TAX PROFIT(Q)

Lowest at CNY -6.68 MM

NET PROFIT(Q)

Lowest at CNY -23.31 MM

EPS(Q)

Lowest at CNY -0.01

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

Net Sales

At CNY 3,689.86 MM has Grown at 27.89%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 1.11 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Shenzhen Tagen Group Co., Ltd.

Pre-Tax Profit

At CNY -6.68 MM has Fallen at -109.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -23.31 MM has Fallen at -157.8%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 188.24 MM has Grown at 12.67%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 55.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 40.56 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.1 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -6.68 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 -23.31 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 43.23% (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