Triangle Tyre Co., Ltd. (601163) 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

Triangle Tyre Co., Ltd.

Why is Triangle Tyre Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 3.60% and Operating profit at -7.92% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY 774.48 MM
NET PROFIT(9M) At CNY 681.98 MM has Grown at -22.81%
ROCE(HY) Lowest at 6.69%

Underperformed the market in the last 1 year

The stock has generated a return of 2.67% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Triangle Tyre Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

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

Is Triangle Tyre Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Triangle Tyre Co., Ltd.

5.81%

-0.15

20.84%

China Shanghai Composite

24.7%

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)

3.60%

EBIT Growth (5y)

-7.92%

EBIT to Interest (avg)

21.15

Debt to EBITDA (avg)

0.19

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.69

Tax Ratio

11.65%

Dividend Payout Ratio

38.45%

Pledged Shares

Institutional Holding

ROCE (avg)

7.12%

ROE (avg)

7.94%

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

0.82

EV to EBIT

3.55

EV to EBITDA

2.20

EV to Capital Employed

0.51

EV to Sales

0.25

PEG Ratio

Dividend Yield

3.85%

ROCE (Latest)

14.28%

ROE (Latest)

6.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -13.67% (YoY

CASH AND EQV(HY)

Highest at CNY 12,369.5 MM

DEBT-EQUITY RATIO (HY)

Lowest at -5.04 %

PRE-TAX PROFIT(Q)

Highest at CNY 308.21 MM

NET PROFIT(Q)

Highest at CNY 286.19 MM

EPS(Q)

Highest at CNY 0.36

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 774.48 MM

NET PROFIT(9M)

At CNY 681.98 MM has Grown at -22.81%

ROCE(HY)

Lowest at 6.69%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.57 times

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.56 times

OPERATING PROFIT MARGIN(Q)

Lowest at 9.37 %

Here's what is working for Triangle Tyre Co., Ltd.

Pre-Tax Profit

Highest at CNY 308.21 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 286.19 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.36

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 12,369.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -5.04 %

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 -13.67% (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 Triangle Tyre Co., Ltd.

Operating Cash Flow

Lowest at CNY 774.48 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Lowest at 4.57 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit Margin

Lowest at 9.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 6.56 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio