Tong Oil Tools Co., Ltd. (300164) 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

Tong Oil Tools Co., Ltd.

Why is Tong Oil Tools Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.25%

The company has been able to generate a Return on Capital Employed (avg) of 2.25% 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 12.97% and Operating profit at 15.23% over the last 5 years

With a fall in Net Sales of -23.52%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
PRE-TAX PROFIT(Q) At CNY -14.78 MM has Fallen at -211.36%
NET PROFIT(Q) At CNY -12.9 MM has Fallen at -232.17%
RAW MATERIAL COST(Y) Grown by 77.26% (YoY)

With ROE of 1.97%, it has a very expensive valuation with a 2.30 Price to Book Value

Over the past year, while the stock has generated a return of 35.99%, its profits have fallen by -45.5%

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 Oil)

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

Is Tong Oil Tools Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Tong Oil Tools Co., Ltd.

76.02%

1.46

83.82%

China Shanghai Composite

3.23%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.97%

EBIT Growth (5y)

15.23%

EBIT to Interest (avg)

2.45

Debt to EBITDA (avg)

0.57

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.68

Tax Ratio

35.02%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.39%

ROE (avg)

1.95%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

174

Industry P/E

Price to Book Value

3.43

EV to EBIT

504.80

EV to EBITDA

59.48

EV to Capital Employed

3.56

EV to Sales

4.21

PEG Ratio

Dividend Yield

ROCE (Latest)

0.70%

ROE (Latest)

1.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 135.45 MM

CASH AND EQV(HY)

Highest at CNY 726.26 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 9.73 times

-22What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -12.53 MM has Fallen at -239.5%

NET PROFIT(Q)

At CNY -11.74 MM has Fallen at -285.21%

NET SALES(HY)

At CNY 492.74 MM has Grown at -10.6%

ROCE(HY)

Lowest at -1.91%

RAW MATERIAL COST(Y)

Grown by 27.02% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.12 times

Here's what is working for Tong Oil Tools Co., Ltd.

Operating Cash Flow

Highest at CNY 135.45 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 726.26 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 9.73 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Tong Oil Tools Co., Ltd.

Pre-Tax Profit

At CNY -12.53 MM has Fallen at -239.5%

over average net sales of the previous four periods of CNY 8.99 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -11.74 MM has Fallen at -285.21%

over average net sales of the previous four periods of CNY 6.34 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 492.74 MM has Grown at -10.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 2.12 times

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 27.02% (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