State Grid Information & Communication Co., Ltd. (600131) 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

State Grid Information & Communication Co., Ltd.

Why is State Grid Information & Communication Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.68% and Operating profit at 6.87% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

ROCE(HY) Lowest at 10.17%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
RAW MATERIAL COST(Y) Grown by 105.74% (YoY)

With ROE of 11.64%, it has a very expensive valuation with a 3.43 Price to Book Value

Over the past year, while the stock has generated a return of -1.57%, its profits have fallen by -11.7%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.57% returns

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 Power)

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

Is State Grid Information & Communication Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

State Grid Information & Communication Co., Ltd.

4.06%

0.00

26.25%

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)

8.68%

EBIT Growth (5y)

6.87%

EBIT to Interest (avg)

49.62

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

1.16

Tax Ratio

4.13%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

13.80%

ROE (avg)

12.54%

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

3.43

EV to EBIT

28.83

EV to EBITDA

18.14

EV to Capital Employed

5.23

EV to Sales

2.27

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

18.14%

ROE (Latest)

11.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

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

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,488.35 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

NET SALES(Q)

Highest at CNY 4,940.46 MM

PRE-TAX PROFIT(Q)

Highest at CNY 391.9 MM

-10What is not working for the Company

ROCE(HY)

Lowest at 10.17%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 105.74% (YoY

CASH AND EQV(HY)

Lowest at CNY 2,166.48 MM

DEBT-EQUITY RATIO (HY)

Highest at 0 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

DIVIDEND PER SHARE(HY)

Lowest at CNY 0

EPS(Q)

Lowest at CNY 0

Here's what is working for State Grid Information & Communication Co., Ltd.

Operating Cash Flow

Highest at CNY 1,488.35 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 4,940.46 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 4,940.46 MM has Grown at 38.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 391.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Here's what is not working for State Grid Information & Communication Co., Ltd.

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 2,166.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 0 %

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 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

Dividend per share

Lowest at CNY 0

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CNY)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 105.74% (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