Wanxiang Qianchao Co., Ltd. (000559) 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

Wanxiang Qianchao Co., Ltd.

Why is Wanxiang Qianchao Co., Ltd. ?

Flat results in Sep 25

INTEREST COVERAGE RATIO(Q) Lowest at 390.49
INVENTORY TURNOVER RATIO(HY) Lowest at 3.14 times
DEBTORS TURNOVER RATIO(HY) Lowest at 2.96 times

With ROE of 10.88%, it has a fair valuation with a 4.30 Price to Book Value

Over the past year, while the stock has generated a return of 110.35%, its profits have risen by 5.2% ; the PEG ratio of the company is 7.6
At the current price, the company has a high dividend yield of 1.3

Consistent Returns over the last 3 years

Along with generating 110.35% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wanxiang Qianchao 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 Wanxiang Qianchao Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wanxiang Qianchao Co., Ltd.

130.77%

3.18

64.04%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.59%

EBIT Growth (5y)

26.35%

EBIT to Interest (avg)

4.82

Debt to EBITDA (avg)

0.56

Net Debt to Equity (avg)

0.07

Sales to Capital Employed (avg)

0.86

Tax Ratio

8.60%

Dividend Payout Ratio

62.54%

Pledged Shares

Institutional Holding

ROCE (avg)

7.70%

ROE (avg)

8.73%

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

4.30

EV to EBIT

42.88

EV to EBITDA

28.01

EV to Capital Employed

4.10

EV to Sales

3.24

PEG Ratio

7.58

Dividend Yield

1.27%

ROCE (Latest)

9.56%

ROE (Latest)

10.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,944.22 MM

ROCE(HY)

Highest at 10.89%

DEBT-EQUITY RATIO (HY)

Lowest at -1.57 %

CASH AND EQV(HY)

Highest at CNY 15,565.09 MM

-13What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 390.49

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.14 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.96 times

INTEREST(Q)

Highest at CNY 61.07 MM

OPERATING PROFIT(Q)

Lowest at CNY 238.49 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.82 %

Here's what is working for Wanxiang Qianchao Co., Ltd.

Operating Cash Flow

Highest at CNY 1,944.22 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 -1.57 % 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

Cash and Eqv

Highest at CNY 15,565.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Wanxiang Qianchao Co., Ltd.

Interest Coverage Ratio

Lowest at 390.49

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 61.07 MM

in the last five periods and Increased by 6% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 238.49 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.82 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 3.14 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.96 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio