Shenzhen Wote Advanced Materials Co., Ltd. (002886) 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 Wote Advanced Materials Co., Ltd.

Why is Shenzhen Wote Advanced Materials Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.91%

The company has been able to generate a Return on Capital Employed (avg) of 2.91% signifying low profitability per unit of total capital (equity and debt)

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 14.62% and Operating profit at -7.10% 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 3.66% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.62% and Operating profit at -7.10% over the last 5 years

With ROE of 2.07%, it has a very expensive valuation with a 3.42 Price to Book Value

Over the past year, while the stock has generated a return of 0.50%, its profits have risen by 95.7% ; the PEG ratio of the company is 1.7
At the current price, the company has a high dividend yield of 0.1

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 Specialty Chemicals)

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

Is Shenzhen Wote Advanced Materials Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Wote Advanced Materials Co., Ltd.

1.66%

1.03

40.42%

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)

14.62%

EBIT Growth (5y)

-7.10%

EBIT to Interest (avg)

2.69

Debt to EBITDA (avg)

6.29

Net Debt to Equity (avg)

0.63

Sales to Capital Employed (avg)

0.57

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

30.00%

Pledged Shares

Institutional Holding

ROCE (avg)

2.91%

ROE (avg)

3.66%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

166

Industry P/E

Price to Book Value

3.42

EV to EBIT

149.68

EV to EBITDA

44.67

EV to Capital Employed

2.56

EV to Sales

3.59

PEG Ratio

1.73

Dividend Yield

0.12%

ROCE (Latest)

1.71%

ROE (Latest)

2.07%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

8What is working for the Company

ROCE(HY)

Highest at 2.33%

INVENTORY TURNOVER RATIO(HY)

Highest at 2.36 times

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -13.4% (YoY

CASH AND EQV(HY)

Highest at CNY 1,241.33 MM

-2What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 13.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.56 %

Here's what is working for Shenzhen Wote Advanced Materials Co., Ltd.

Inventory Turnover Ratio

Highest at 2.36 times and Grown

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

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CNY 1,241.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -13.4% (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 Wote Advanced Materials Co., Ltd.

Operating Profit

Lowest at CNY 13.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.56 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales