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 21.08%, 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.

12.4%

1.70

87.58%

China Shanghai Composite

23.91%

1.73

13.79%

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)

1.01

Debt to EBITDA (avg)

0.71

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

0.68

Tax Ratio

21.88%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.25%

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

116

Industry P/E

Price to Book Value

2.30

EV to EBIT

335.16

EV to EBITDA

39.49

EV to Capital Employed

2.36

EV to Sales

2.79

PEG Ratio

Dividend Yield

ROCE (Latest)

0.70%

ROE (Latest)

1.97%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at CNY 158.61 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 9.75 times

CASH AND EQV(HY)

Highest at CNY 690.98 MM

-25What is not working for the Company

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

NET SALES(Q)

Lowest at CNY 219.35 MM

OPERATING PROFIT(Q)

Lowest at CNY -15.22 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -6.94 %

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

Inventory Turnover Ratio

Highest at 9.75 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at CNY 158.61 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 690.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

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

Net Sales

At CNY 219.35 MM has Fallen at -23.46%

over average net sales of the previous four periods of CNY 286.59 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -14.78 MM has Fallen at -211.36%

over average net sales of the previous four periods of CNY 13.28 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -12.9 MM has Fallen at -232.17%

over average net sales of the previous four periods of CNY 9.76 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 219.35 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -15.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -6.94 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 77.26% (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