Shenzhen Woer Heat-Shrinkable Material Co., Ltd. (002130) 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 Woer Heat-Shrinkable Material Co., Ltd.

Why is Shenzhen Woer Heat-Shrinkable Material Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 13.77% and Operating profit at 14.49% over the last 5 years

The company has declared negative results in Mar'2026 after 11 consecutive positive quarters

ROCE(HY) Lowest at 15.08%
INTEREST COVERAGE RATIO(Q) Lowest at 2,087.87
OPERATING PROFIT MARGIN(Q) Lowest at 14.81 %

With ROE of 13.04%, it has a fair valuation with a 2.20 Price to Book Value

Over the past year, while the stock has generated a return of -10.59%, its profits have risen by 20.2% ; the PEG ratio of the company is 0.8
At the current price, the company has a high dividend yield of 0.9

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 23.91% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.59% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Shenzhen Woer Heat-Shrinkable Material 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 Woer Heat-Shrinkable Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Woer Heat-Shrinkable Material Co., Ltd.

-12.75%

1.29

49.88%

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)

13.77%

EBIT Growth (5y)

14.49%

EBIT to Interest (avg)

11.06

Debt to EBITDA (avg)

1.12

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.88

Tax Ratio

14.22%

Dividend Payout Ratio

19.00%

Pledged Shares

Institutional Holding

ROCE (avg)

14.62%

ROE (avg)

15.71%

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

2.20

EV to EBIT

13.75

EV to EBITDA

11.63

EV to Capital Employed

2.34

EV to Sales

2.21

PEG Ratio

0.84

Dividend Yield

0.85%

ROCE (Latest)

17.00%

ROE (Latest)

13.04%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,104.57 MM

CASH AND EQV(HY)

Highest at CNY 4,764.26 MM

DEBT-EQUITY RATIO (HY)

Lowest at -7.55 %

-12What is not working for the Company

ROCE(HY)

Lowest at 15.08%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,087.87

OPERATING PROFIT MARGIN(Q)

Lowest at 14.81 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.99 times

OPERATING PROFIT(Q)

Lowest at CNY 300.9 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 283.51 MM

NET PROFIT(Q)

Lowest at CNY 231.29 MM

EPS(Q)

Lowest at CNY 0.17

Here's what is working for Shenzhen Woer Heat-Shrinkable Material Co., Ltd.

Operating Cash Flow

Highest at CNY 1,104.57 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 4,764.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -7.55 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Shenzhen Woer Heat-Shrinkable Material Co., Ltd.

Interest Coverage Ratio

Lowest at 2,087.87

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 14.81 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Profit

Lowest at CNY 300.9 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 283.51 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 231.29 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.17

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 4.99 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio