Wangneng Environment Co., Ltd. (002034) 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

Wangneng Environment Co., Ltd.

Why is Wangneng Environment Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 10.96% and Operating profit at 3.20% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 10.62% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.96% and Operating profit at 3.20% over the last 5 years

With a growth in Net Sales of 21.36%, the company declared Very Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 1,809.9 MM
ROCE(HY) Highest at 10.1%
DEBT-EQUITY RATIO (HY) Lowest at 56.44 %

With ROE of 10.03%, it has a fair valuation with a 1.25 Price to Book Value

Over the past year, while the stock has generated a return of 3.71%, its profits have risen by 28.5% ; the PEG ratio of the company is 0.5
At the current price, the company has a high dividend yield of 2.3

Underperformed the market in the last 1 year

The stock has generated a return of 3.71% in the last 1 year, much lower than market (China Shanghai Composite) returns of 21.43%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wangneng Environment Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is Wangneng Environment Co., Ltd. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Wangneng Environment Co., Ltd.

-0.12%

0.67

28.74%

China Shanghai Composite

21.43%

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)

10.96%

EBIT Growth (5y)

3.20%

EBIT to Interest (avg)

3.27

Debt to EBITDA (avg)

3.57

Net Debt to Equity (avg)

0.73

Sales to Capital Employed (avg)

0.26

Tax Ratio

15.80%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.27%

ROE (avg)

10.62%

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

1.25

EV to EBIT

15.44

EV to EBITDA

9.41

EV to Capital Employed

1.16

EV to Sales

4.21

PEG Ratio

0.46

Dividend Yield

2.31%

ROCE (Latest)

7.52%

ROE (Latest)

10.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,809.9 MM

ROCE(HY)

Highest at 10.1%

DEBT-EQUITY RATIO (HY)

Lowest at 56.44 %

INVENTORY TURNOVER RATIO(HY)

Highest at 32.77 times

RAW MATERIAL COST(Y)

Fallen by -3.71% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 248.3 MM

NET PROFIT(Q)

Highest at CNY 201.16 MM

-6What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 549.67

OPERATING PROFIT(Q)

Lowest at CNY 250.56 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.81 times

OPERATING PROFIT MARGIN(Q)

Lowest at 29.98 %

Here's what is working for Wangneng Environment Co., Ltd.

Operating Cash Flow

Highest at CNY 1,809.9 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 56.44 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 32.77 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

Pre-Tax Profit

Highest at CNY 248.3 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 201.16 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -3.71% (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 Wangneng Environment Co., Ltd.

Interest Coverage Ratio

Lowest at 549.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 250.56 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 29.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 1.81 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio