Vatti Corp. Ltd. (002035) 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

Vatti Corp. Ltd.

Why is Vatti Corp. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.06% and Operating profit at -5.40% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at CNY 552.15 MM
NET SALES(9M) At CNY 4,157.65 MM has Grown at -9.13%
INTEREST COVERAGE RATIO(Q) Lowest at 11,311.23

With ROE of 11.92%, it has a fair valuation with a 1.39 Price to Book Value

Over the past year, while the stock has generated a return of -23.19%, its profits have fallen by -9.3%
At the current price, the company has a high dividend yield of 4.3

Below par performance in long term as well as near term

Along with generating -23.19% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Vatti Corp. Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Vatti Corp. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Vatti Corp. Ltd.

-18.9%

-1.28

19.38%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.06%

EBIT Growth (5y)

-5.40%

EBIT to Interest (avg)

66.76

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

1.21

Tax Ratio

9.54%

Dividend Payout Ratio

51.53%

Pledged Shares

Institutional Holding

ROCE (avg)

10.28%

ROE (avg)

9.94%

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

1.39

EV to EBIT

10.41

EV to EBITDA

7.52

EV to Capital Employed

1.67

EV to Sales

0.61

PEG Ratio

Dividend Yield

4.29%

ROCE (Latest)

16.08%

ROE (Latest)

11.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

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

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 99.3%

RAW MATERIAL COST(Y)

Fallen by -13.65% (YoY

CASH AND EQV(HY)

Highest at CNY 5,647.77 MM

DIVIDEND PER SHARE(HY)

Highest at CNY 5.41

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 552.15 MM

NET SALES(9M)

At CNY 4,157.65 MM has Grown at -9.13%

INTEREST COVERAGE RATIO(Q)

Lowest at 11,311.23

Here's what is working for Vatti Corp. Ltd.

Cash and Eqv

Highest at CNY 5,647.77 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at CNY 5.41

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 99.3%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -13.65% (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 Vatti Corp. Ltd.

Operating Cash Flow

Lowest at CNY 552.15 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)

Interest Coverage Ratio

Lowest at 11,311.23

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 4,157.65 MM has Grown at -9.13%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)