Sinomach Automobile Co., Ltd. (600335) 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

Sinomach Automobile Co., Ltd.

Why is Sinomach Automobile Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.78%

The company has been able to generate a Return on Capital Employed (avg) of 3.78% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -4.28% and Operating profit at -10.09% over the last 5 years

NET SALES(Q) At CNY 10,007.6 MM has Fallen at -25.13%
RAW MATERIAL COST(Y) Grown by 118.83% (YoY)
CASH AND EQV(HY) Lowest at CNY 6,445.35 MM

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -0.46% 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 Retailing)

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

Is Sinomach Automobile Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sinomach Automobile Co., Ltd.

-15.35%

0.17

22.03%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.28%

EBIT Growth (5y)

-10.09%

EBIT to Interest (avg)

3.19

Debt to EBITDA (avg)

2.34

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

2.26

Tax Ratio

23.95%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.78%

ROE (avg)

2.41%

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

0.78

EV to EBIT

22.70

EV to EBITDA

8.82

EV to Capital Employed

0.80

EV to Sales

0.26

PEG Ratio

0.10

Dividend Yield

2.25%

ROCE (Latest)

3.53%

ROE (Latest)

3.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

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

7What is working for the Company

NET PROFIT(HY)

At CNY 207.34 MM has Grown at 59.62%

ROCE(HY)

Highest at 3.67%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

DEBT-EQUITY RATIO (HY)

Lowest at 0 %

-21What is not working for the Company

NET SALES(Q)

At CNY 10,007.6 MM has Fallen at -25.13%

RAW MATERIAL COST(Y)

Grown by 118.83% (YoY

CASH AND EQV(HY)

Lowest at CNY 6,445.35 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

OPERATING PROFIT(Q)

Lowest at CNY 93.54 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.93 %

PRE-TAX PROFIT(Q)

Lowest at CNY 90.24 MM

NET PROFIT(Q)

Lowest at CNY 60.16 MM

EPS(Q)

Lowest at CNY 0

Here's what is working for Sinomach Automobile Co., Ltd.

Debt-Equity Ratio

Lowest at 0 %

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 Sinomach Automobile Co., Ltd.

Net Sales

At CNY 10,007.6 MM has Fallen at -25.13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 93.54 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.93 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 90.24 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Fallen at -25.89%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 60.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -26.14%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 6,445.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 118.83% (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