Trina Solar Co., Ltd. (688599) 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

Trina Solar Co., Ltd.

Why is Trina Solar Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 20.43% and Operating profit at -256.60% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 10.30% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 20.43% and Operating profit at -256.60% over the last 5 years

The company has declared negative results for the last 6 consecutive quarters

The company has declared negative results in Dec 23 after 15 consecutive negative quarters
NET SALES(HY) At CNY 35,635.4 MM has Grown at -20.28%
NET PROFIT(HY) At CNY -2,888.55 MM has Grown at -115.66%
OPERATING CASH FLOW(Y) Lowest at CNY 7,059.03 MM

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 2.63%, its profits have fallen by -344.2%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 2.63% 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 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 Other Electrical Equipment)

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

Is Trina Solar Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Trina Solar Co., Ltd.

4.83%

-0.23

52.58%

China Shanghai Composite

13.33%

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)

20.43%

EBIT Growth (5y)

-256.60%

EBIT to Interest (avg)

2.84

Debt to EBITDA (avg)

4.07

Net Debt to Equity (avg)

1.34

Sales to Capital Employed (avg)

1.13

Tax Ratio

12.85%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.57%

ROE (avg)

10.30%

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

1.55

EV to EBIT

-8.63

EV to EBITDA

-48.12

EV to Capital Employed

1.23

EV to Sales

1.00

PEG Ratio

Dividend Yield

ROCE (Latest)

-14.30%

ROE (Latest)

-29.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

No Trend

Mildly Bullish

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

4What is working for the Company

NET PROFIT(Q)

Highest at CNY -1,291.17 MM

EPS(Q)

Highest at CNY -0.6

-26What is not working for the Company

NET SALES(HY)

At CNY 35,635.4 MM has Grown at -20.28%

NET PROFIT(HY)

At CNY -2,888.55 MM has Grown at -115.66%

OPERATING CASH FLOW(Y)

Lowest at CNY 7,059.03 MM

ROCE(HY)

Lowest at -26.68%

DEBT-EQUITY RATIO (HY)

Highest at 147.2 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.46 times

RAW MATERIAL COST(Y)

Grown by 52.32% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.24 times

Here's what is working for Trina Solar Co., Ltd.

Net Profit

Highest at CNY -1,291.17 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.6

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Trina Solar Co., Ltd.

Net Sales

At CNY 35,635.4 MM has Grown at -20.28%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 147.2 % and Grown

In each half year 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 2.46 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at CNY 7,059.03 MM

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 3.24 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 52.32% (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