Western Securities Co., Ltd. (002673) 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

Western Securities Co., Ltd.

Why is Western Securities Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 4.14%

Poor long term growth as Net Sales has grown by an annual rate of 1.70% and Operating profit at 7.42%
The company has been able to generate a Return on Equity (avg) of 4.14% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 1.70% and Operating profit at 7.42%

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 2,302.74 MM
DEBT-EQUITY RATIO (HY) Highest at 190.18 %
DEBTORS TURNOVER RATIO(HY) Lowest at 0.57 times

Below par performance in long term as well as near term

Along with generating -8.24% 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 Capital Markets)

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

Is Western Securities Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Western Securities Co., Ltd.

-8.24%

0.20

22.84%

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)

1.70%

EBIT Growth (5y)

7.42%

EBIT to Interest (avg)

2.85

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

18.07%

Dividend Payout Ratio

30.54%

Pledged Shares

Institutional Holding

ROCE (avg)

11.22%

ROE (avg)

4.14%

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

0.91

EV to EBIT

7.58

EV to EBITDA

6.93

EV to Capital Employed

0.90

EV to Sales

3.63

PEG Ratio

0.57

Dividend Yield

3.05%

ROCE (Latest)

11.81%

ROE (Latest)

5.94%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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 -4.93% (YoY

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 2,302.74 MM

DEBT-EQUITY RATIO (HY)

Highest at 190.18 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.57 times

PRE-TAX PROFIT(Q)

Lowest at CNY 389.35 MM

NET PROFIT(Q)

Lowest at CNY 284.5 MM

EPS(Q)

Lowest at CNY 0.06

Here's what is working for Western Securities Co., Ltd.

Raw Material Cost

Fallen by -4.93% (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 Western Securities Co., Ltd.

Operating Cash Flow

Lowest at CNY 2,302.74 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Lowest at CNY 389.35 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 389.35 MM has Fallen at -31.26%

over average net sales of the previous four periods of CNY 566.44 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 284.5 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

At CNY 284.5 MM has Fallen at -35.11%

over average net sales of the previous four periods of CNY 438.41 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 190.18 %

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 0.57 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CNY 0.03 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income