Sichuan Anning Iron & Titanium Co. Ltd. (002978) 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

Sichuan Anning Iron & Titanium Co. Ltd.

Why is Sichuan Anning Iron & Titanium Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.61% and Operating profit at 6.16% over the last 5 years

The company has declared Negative results for the last 12 consecutive quarters

INTEREST(HY) At CNY 15.38 MM has Grown at 62.96%
OPERATING CASH FLOW(Y) Lowest at CNY 87 MM
ROCE(HY) Lowest at 10.82%

With ROE of 10.23%, it has a fair valuation with a 1.75 Price to Book Value

Over the past year, while the stock has generated a return of 1.49%, its profits have fallen by -8.3%
At the current price, the company has a high dividend yield of 1

Underperformed the market in the last 1 year

The stock has generated a return of 1.49% in the last 1 year, much lower than market (China Shanghai Composite) returns of 13.33%

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 Ferrous Metals)

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

Is Sichuan Anning Iron & Titanium Co. Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sichuan Anning Iron & Titanium Co. Ltd.

3.88%

0.02

35.19%

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)

5.61%

EBIT Growth (5y)

6.16%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

0.25

Tax Ratio

16.66%

Dividend Payout Ratio

46.99%

Pledged Shares

Institutional Holding

ROCE (avg)

30.29%

ROE (avg)

17.93%

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

1.75

EV to EBIT

12.18

EV to EBITDA

9.37

EV to Capital Employed

2.06

EV to Sales

6.00

PEG Ratio

Dividend Yield

1.02%

ROCE (Latest)

16.88%

ROE (Latest)

10.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly 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

5What is working for the Company

NET SALES(9M)

At CNY 1,606.53 MM has Grown at 18.19%

RAW MATERIAL COST(Y)

Fallen by -5.45% (YoY

CASH AND EQV(HY)

Highest at CNY 7,016.97 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 4.73 times

-23What is not working for the Company

INTEREST(HY)

At CNY 15.38 MM has Grown at 62.96%

OPERATING CASH FLOW(Y)

Lowest at CNY 87 MM

ROCE(HY)

Lowest at 10.82%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,326.03

DEBT-EQUITY RATIO (HY)

Highest at 3.7 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.1 times

OPERATING PROFIT(Q)

Lowest at CNY 257.03 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 51.49 %

EPS(Q)

Lowest at CNY 0.41

Here's what is working for Sichuan Anning Iron & Titanium Co. Ltd.

Net Sales

At CNY 1,606.53 MM has Grown at 18.19%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 7,016.97 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 4.73 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 -5.45% (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 Sichuan Anning Iron & Titanium Co. Ltd.

Interest

At CNY 15.38 MM has Grown at 62.96%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 3,326.03

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY 87 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 257.03 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 51.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

EPS

Lowest at CNY 0.41

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 3.7 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 1.1 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio