Warom Technology, Inc. Co. (603855) 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

Warom Technology, Inc. Co.

Why is Warom Technology, Inc. Co. ?

Poor long term growth as Net Sales has grown by an annual rate of 12.41% and Operating profit at 11.35% over the last 5 years

With a fall in EPS of -11.74%, the company declared Very Negative results in Sep 25

The company has declared negative results in Jan 70 after 2 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at CNY 183.39 MM
NET PROFIT(HY) At CNY 180.13 MM has Grown at -22.87%
INTEREST COVERAGE RATIO(Q) Lowest at 8,055.42

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.04% returns

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 Electronics & Appliances)

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

Is Warom Technology, Inc. Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Warom Technology, Inc. Co.

-16.97%

-0.28

32.74%

China Shanghai Composite

15.17%

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)

12.41%

EBIT Growth (5y)

11.35%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.11

Sales to Capital Employed (avg)

1.38

Tax Ratio

10.80%

Dividend Payout Ratio

72.16%

Pledged Shares

Institutional Holding

ROCE (avg)

27.34%

ROE (avg)

20.79%

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

3.03

EV to EBIT

13.11

EV to EBITDA

11.88

EV to Capital Employed

3.29

EV to Sales

1.60

PEG Ratio

1.48

Dividend Yield

4.97%

ROCE (Latest)

25.06%

ROE (Latest)

22.74%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -20.88% (YoY

-27What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 183.39 MM

NET PROFIT(HY)

At CNY 180.13 MM has Grown at -22.87%

INTEREST COVERAGE RATIO(Q)

Lowest at 8,055.42

CASH AND EQV(HY)

Lowest at CNY 1,313.03 MM

DEBT-EQUITY RATIO (HY)

Highest at -6.2 %

NET SALES(Q)

Lowest at CNY 675.35 MM

INTEREST(Q)

Highest at CNY 1.15 MM

OPERATING PROFIT(Q)

Lowest at CNY 92.4 MM

PRE-TAX PROFIT(Q)

Lowest at CNY 107.61 MM

Here's what is working for Warom Technology, Inc. Co.

Raw Material Cost

Fallen by -20.88% (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 Warom Technology, Inc. Co.

Net Sales

At CNY 675.35 MM has Fallen at -35.71%

over average net sales of the previous four periods of CNY 1,050.43 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 183.39 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

At CNY 1.15 MM has Grown at 23.22%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 8,055.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 180.13 MM has Grown at -22.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 675.35 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 1.15 MM

in the last five periods and Increased by 23.22% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 92.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 107.61 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Cash and Eqv

Lowest at CNY 1,313.03 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -6.2 %

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