Tianma Microelectronics Co., Ltd. (000050) 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

Tianma Microelectronics Co., Ltd.

Why is Tianma Microelectronics Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.02%

The company has been able to generate a Return on Capital Employed (avg) of 1.02% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 4.18% and Operating profit at -6.69% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 1.72% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.18% and Operating profit at -6.69% over the last 5 years

The company has declared positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 7,713.28 MM
NET PROFIT(Q) At CNY 107.22 MM has Grown at 1,505.6%
ROCE(HY) Highest at 0.43%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -5.75%, its profits have risen by 97.9%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tianma Microelectronics Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in IT - Hardware)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tianma Microelectronics Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tianma Microelectronics Co., Ltd.

-5.36%

0.23

30.14%

China Shanghai Composite

24.7%

1.93

12.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.18%

EBIT Growth (5y)

-6.69%

EBIT to Interest (avg)

0.02

Debt to EBITDA (avg)

8.02

Net Debt to Equity (avg)

1.25

Sales to Capital Employed (avg)

0.51

Tax Ratio

96.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.02%

ROE (avg)

1.72%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.86

EV to EBIT

604.94

EV to EBITDA

8.61

EV to Capital Employed

0.93

EV to Sales

1.48

PEG Ratio

Dividend Yield

ROCE (Latest)

0.15%

ROE (Latest)

-0.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

OBV

Mildly Bearish

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

23What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 7,713.28 MM

NET PROFIT(Q)

At CNY 107.22 MM has Grown at 1,505.6%

ROCE(HY)

Highest at 0.43%

RAW MATERIAL COST(Y)

Fallen by -64.03% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 95.26 %

PRE-TAX PROFIT(Q)

Highest at CNY 229.91 MM

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 130.18

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.71 times

OPERATING PROFIT(Q)

Lowest at CNY 238.81 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.6 %

Here's what is working for Tianma Microelectronics Co., Ltd.

Net Profit

At CNY 107.22 MM has Grown at 1,505.6%

over average net sales of the previous four periods of CNY 6.68 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 7,713.28 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY 229.91 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 229.91 MM has Grown at 76.57%

over average net sales of the previous four periods of CNY 130.21 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Lowest at 95.26 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -64.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Tianma Microelectronics Co., Ltd.

Interest Coverage Ratio

Lowest at 130.18

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 238.81 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.6 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 3.71 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio