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

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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 -3.84% and Operating profit at 1.86% over the last 5 years

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

INTEREST(9M) At CNY 7.57 MM has Grown at 73.06%
OPERATING CASH FLOW(Y) Lowest at CNY 775.03 MM
RAW MATERIAL COST(Y) Grown by 105.13% (YoY)

With ROE of 11.64%, it has a very expensive valuation with a 3.33 Price to Book Value

Over the past year, while the stock has generated a return of -27.40%, its profits have fallen by -11.7%
At the current price, the company has a high dividend yield of 0.1

Below par performance in long term as well as near term

Along with generating -27.40% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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.

-27.4%

-0.48

29.27%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.84%

EBIT Growth (5y)

1.86%

EBIT to Interest (avg)

49.62

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.29

Sales to Capital Employed (avg)

1.08

Tax Ratio

4.13%

Dividend Payout Ratio

30.03%

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

3.33

EV to EBIT

27.84

EV to EBITDA

17.52

EV to Capital Employed

5.05

EV to Sales

2.20

PEG Ratio

Dividend Yield

0.06%

ROCE (Latest)

18.14%

ROE (Latest)

11.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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(Q)

At CNY 2,412.97 MM has Grown at 45.4%

PRE-TAX PROFIT(Q)

At CNY 287.43 MM has Grown at 78%

-12What is not working for the Company

INTEREST(9M)

At CNY 7.57 MM has Grown at 73.06%

OPERATING CASH FLOW(Y)

Lowest at CNY 775.03 MM

RAW MATERIAL COST(Y)

Grown by 105.13% (YoY

CASH AND EQV(HY)

Lowest at CNY 2,596.9 MM

DEBT-EQUITY RATIO (HY)

Highest at 0 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0%

EPS(Q)

Lowest at CNY 0

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

Net Sales

At CNY 2,412.97 MM has Grown at 45.4%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 287.43 MM has Grown at 78%

Year on Year (YoY)

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.

Interest

At CNY 7.57 MM has Grown at 73.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 775.03 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (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 2,596.9 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%

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%

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 105.13% (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