Wecome Intelligent Manufacturing Co., Ltd. () 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

Wecome Intelligent Manufacturing Co., Ltd.

Why is Wecome Intelligent Manufacturing Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -4.41% and Operating profit at -17.61% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

ROCE(HY) Lowest at 4.36%
INTEREST COVERAGE RATIO(Q) Lowest at 2,558.64
PRE-TAX PROFIT(Q) At CNY 16.36 MM has Fallen at -48.88%

Underperformed the market in the last 1 year

The stock has generated a return of 5.94% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Wecome Intelligent Manufacturing Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Wecome Intelligent Manufacturing Co., Ltd.

5.57%

1.38

31.84%

China Shanghai Composite

17.07%

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)

-4.41%

EBIT Growth (5y)

-17.61%

EBIT to Interest (avg)

13.79

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

0.78

Tax Ratio

10.08%

Dividend Payout Ratio

33.40%

Pledged Shares

Institutional Holding

ROCE (avg)

6.16%

ROE (avg)

7.96%

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

2.54

EV to EBIT

59.69

EV to EBITDA

33.35

EV to Capital Employed

2.64

EV to Sales

2.68

PEG Ratio

Dividend Yield

ROCE (Latest)

4.42%

ROE (Latest)

4.87%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 322.7 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 7.96 times

-12What is not working for the Company

ROCE(HY)

Lowest at 4.36%

INTEREST COVERAGE RATIO(Q)

Lowest at 2,558.64

PRE-TAX PROFIT(Q)

At CNY 16.36 MM has Fallen at -48.88%

NET PROFIT(Q)

At CNY 15.85 MM has Fallen at -45.41%

DEBT-EQUITY RATIO (HY)

Highest at 0.45 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.49 times

OPERATING PROFIT(Q)

Lowest at CNY 10.06 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.91 %

Here's what is working for Wecome Intelligent Manufacturing Co., Ltd.

Operating Cash Flow

Highest at CNY 322.7 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 7.96 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Wecome Intelligent Manufacturing Co., Ltd.

Interest Coverage Ratio

Lowest at 2,558.64

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 16.36 MM has Fallen at -48.88%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 15.85 MM has Fallen at -45.41%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 10.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.91 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 0.45 %

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

Debtors Turnover Ratio

Lowest at 1.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio