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.

-9.62%

0.00

26.25%

China Shanghai Composite

21.43%

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)

8.74%

EBIT Growth (5y)

4.03%

EBIT to Interest (avg)

49.62

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

1.19

Tax Ratio

4.13%

Dividend Payout Ratio

30.04%

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

2.84

EV to EBIT

28.07

EV to EBITDA

17.21

EV to Capital Employed

3.31

EV to Sales

1.57

PEG Ratio

Dividend Yield

0.39%

ROCE (Latest)

11.80%

ROE (Latest)

10.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

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

OPERATING CASH FLOW(Y)

Highest at CNY 2,743.82 MM

NET SALES(HY)

At CNY 6,284.77 MM has Grown at 26.81%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.92 times

-11What is not working for the Company

ROCE(HY)

Lowest at 9.56%

RAW MATERIAL COST(Y)

Grown by 36.34% (YoY

NET SALES(Q)

Lowest at CNY 1,344.31 MM

NET PROFIT(Q)

Lowest at CNY 4.28 MM

EPS(Q)

Lowest at CNY 0

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

Operating Cash Flow

Highest at CNY 2,743.82 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Highest at 1.92 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 State Grid Information & Communication Co., Ltd.

Net Sales

Lowest at CNY 1,344.31 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Profit

Lowest at CNY 4.28 MM

in the last five periods

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)

Raw Material Cost

Grown by 36.34% (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