SMS Electric Co., Ltd. Zhengzhou (002857) 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

SMS Electric Co., Ltd. Zhengzhou

Why is SMS Electric Co., Ltd. Zhengzhou ?

Poor Management Efficiency with a low ROCE of 3.64%

The company has been able to generate a Return on Capital Employed (avg) of 3.64% 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 28.07% and Operating profit at -1.09% over the last 5 years

With ROE of 4.92%, it has a expensive valuation with a 5.82 Price to Book Value

Over the past year, while the stock has generated a return of 34.07%, its profits have risen by 379.2% ; the PEG ratio of the company is 0.3
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 Electronics & Appliances)

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

Is SMS Electric Co., Ltd. Zhengzhou for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

SMS Electric Co., Ltd. Zhengzhou

44.97%

2.04

50.69%

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)

28.07%

EBIT Growth (5y)

-1.09%

EBIT to Interest (avg)

6.12

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.65

Sales to Capital Employed (avg)

0.77

Tax Ratio

17.75%

Dividend Payout Ratio

10.47%

Pledged Shares

Institutional Holding

ROCE (avg)

3.64%

ROE (avg)

2.72%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

118

Industry P/E

Price to Book Value

5.82

EV to EBIT

98.62

EV to EBITDA

64.41

EV to Capital Employed

13.53

EV to Sales

3.71

PEG Ratio

0.31

Dividend Yield

0.06%

ROCE (Latest)

13.72%

ROE (Latest)

4.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

16What is working for the Company

NET SALES(Q)

At CNY 138.91 MM has Grown at 146.73%

ROCE(HY)

Highest at 2.14%

CASH AND EQV(HY)

Highest at CNY 953.22 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 3.98 times

-11What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -14.73 MM has Fallen at -143.85%

NET PROFIT(Q)

At CNY -12.37 MM has Fallen at -119.6%

RAW MATERIAL COST(Y)

Grown by 68.17% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -16.49 MM

Here's what is working for SMS Electric Co., Ltd. Zhengzhou

Net Sales

At CNY 138.91 MM has Grown at 146.73%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 953.22 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 3.98 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for SMS Electric Co., Ltd. Zhengzhou

Pre-Tax Profit

At CNY -14.73 MM has Fallen at -143.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -12.37 MM has Fallen at -119.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -16.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Raw Material Cost

Grown by 68.17% (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