Wanda Film Holding Co., Ltd. (002739) 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

Wanda Film Holding Co., Ltd.

Why is Wanda Film Holding Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.52%

The company has been able to generate a Return on Capital Employed (avg) of 3.52% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 4.09% and Operating profit at 16.30% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.29% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

NET SALES(HY) At CNY 5,858.14 MM has Grown at -18.15%
OPERATING CASH FLOW(Y) Lowest at CNY 1,752.72 MM
RAW MATERIAL COST(Y) Grown by 29.4% (YoY)

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 -26.39%, its profits have risen by 46.3%

Below par performance in long term as well as near term

Along with generating -26.39% 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 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 Media & Entertainment)

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

Is Wanda Film Holding Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wanda Film Holding Co., Ltd.

-27.38%

-1.04

33.95%

China Shanghai Composite

20.18%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.09%

EBIT Growth (5y)

16.30%

EBIT to Interest (avg)

-1.07

Debt to EBITDA (avg)

1.16

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

1.04

Tax Ratio

31.06%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

3.52%

ROE (avg)

2.29%

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

2.37

EV to EBIT

79.99

EV to EBITDA

12.36

EV to Capital Employed

2.30

EV to Sales

1.69

PEG Ratio

Dividend Yield

ROCE (Latest)

2.87%

ROE (Latest)

-3.21%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bullish

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

9What is working for the Company

NET PROFIT(HY)

Higher at CNY -113.66 MM

DEBT-EQUITY RATIO (HY)

Lowest at 83.24 %

-11What is not working for the Company

NET SALES(HY)

At CNY 5,858.14 MM has Grown at -18.15%

OPERATING CASH FLOW(Y)

Lowest at CNY 1,752.72 MM

RAW MATERIAL COST(Y)

Grown by 29.4% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 9.05 %

NET PROFIT(Q)

At CNY 84.56 MM has Fallen at -33.45%

Here's what is working for Wanda Film Holding Co., Ltd.

Debt-Equity Ratio

Lowest at 83.24 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Here's what is not working for Wanda Film Holding Co., Ltd.

Net Sales

At CNY 5,858.14 MM has Grown at -18.15%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 1,752.72 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit Margin

Lowest at 9.05 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 84.56 MM has Fallen at -33.45%

over average net sales of the previous four periods of CNY 127.05 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 29.4% (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