Shenzhen ZhaoWei Machinery & Electronic Co., Ltd. () 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 ZhaoWei Machinery & Electronic Co., Ltd.

Why is Shenzhen ZhaoWei Machinery & Electronic Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.31% and Operating profit at -9.88% over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at 5.71%
DEBTORS TURNOVER RATIO(HY) Lowest at 2.85 times
INTEREST COVERAGE RATIO(Q) Lowest at 5,033.92

With ROE of 7.25%, it has a very expensive valuation with a 9.15 Price to Book Value

Over the past year, while the stock has generated a return of 0.73%, its profits have risen by 17.2%

Underperformed the market in the last 1 year

The stock has generated a return of 0.73% in the last 1 year, much lower than market (China Shanghai Composite) returns of 19.02%

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 Industrial Manufacturing)

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

Is Shenzhen ZhaoWei Machinery & Electronic Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen ZhaoWei Machinery & Electronic Co., Ltd.

0.73%

2.28

47.20%

China Shanghai Composite

19.02%

1.42

13.40%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.31%

EBIT Growth (5y)

-9.88%

EBIT to Interest (avg)

79.04

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.41

Tax Ratio

7.62%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.27%

ROE (avg)

6.35%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

126

Industry P/E

Price to Book Value

9.15

EV to EBIT

154.70

EV to EBITDA

113.66

EV to Capital Employed

11.05

EV to Sales

17.73

PEG Ratio

Dividend Yield

ROCE (Latest)

7.14%

ROE (Latest)

7.25%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bearish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 265.4 MM

RAW MATERIAL COST(Y)

Fallen by -7.6% (YoY

CASH AND EQV(HY)

Highest at CNY 4,119.43 MM

DEBT-EQUITY RATIO (HY)

Lowest at -32.68 %

-11What is not working for the Company

ROCE(HY)

Lowest at 5.71%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.85 times

INTEREST COVERAGE RATIO(Q)

Lowest at 5,033.92

NET SALES(Q)

Lowest at CNY 357.48 MM

OPERATING PROFIT(Q)

Lowest at CNY 24.16 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.76 %

NET PROFIT(Q)

Lowest at CNY 51.05 MM

EPS(Q)

Lowest at CNY 0.17

Here's what is working for Shenzhen ZhaoWei Machinery & Electronic Co., Ltd.

Operating Cash Flow

Highest at CNY 265.4 MM

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 4,119.43 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -32.68 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -7.6% (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 ZhaoWei Machinery & Electronic Co., Ltd.

Interest Coverage Ratio

Lowest at 5,033.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 2.85 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 357.48 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 24.16 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 51.05 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)