Wuhu Sanlian Forging 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

Wuhu Sanlian Forging Co., Ltd.

Why is Wuhu Sanlian Forging Co., Ltd. ?

The company has declared negative results in Mar 25 after 3 consecutive negative quarters

DEBT-EQUITY RATIO (HY) Highest at 34.46 %
INTEREST COVERAGE RATIO(Q) Lowest at 681.31
RAW MATERIAL COST(Y) Grown by 23.83% (YoY)

Below par performance in long term as well as near term

Along with generating -12.84% 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 Auto Components & Equipments)

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

Is Wuhu Sanlian Forging Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wuhu Sanlian Forging Co., Ltd.

-100.0%

-0.07

53.08%

China Shanghai Composite

16.01%

1.03

14.98%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.60%

EBIT Growth (5y)

7.39%

EBIT to Interest (avg)

32.44

Debt to EBITDA (avg)

1.24

Net Debt to Equity (avg)

0.25

Sales to Capital Employed (avg)

0.77

Tax Ratio

7.56%

Dividend Payout Ratio

15.50%

Pledged Shares

Institutional Holding

ROCE (avg)

7.07%

ROE (avg)

9.28%

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

1.06

EV to EBIT

16.14

EV to EBITDA

9.60

EV to Capital Employed

1.04

EV to Sales

1.35

PEG Ratio

Dividend Yield

0.45%

ROCE (Latest)

6.47%

ROE (Latest)

9.31%

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

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

DEBTORS TURNOVER RATIO(HY)

Highest at 3.23 times

-25What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 34.46 %

INTEREST COVERAGE RATIO(Q)

Lowest at 681.31

RAW MATERIAL COST(Y)

Grown by 23.83% (YoY

INTEREST(Q)

Highest at CNY 2.07 MM

OPERATING PROFIT(Q)

Lowest at CNY 14.11 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.34 %

PRE-TAX PROFIT(Q)

Lowest at CNY 19.27 MM

NET PROFIT(Q)

Lowest at CNY 20.14 MM

EPS(Q)

Lowest at CNY 0.09

Here's what is working for Wuhu Sanlian Forging Co., Ltd.

Debtors Turnover Ratio

Highest at 3.23 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Wuhu Sanlian Forging Co., Ltd.

Interest

At CNY 2.07 MM has Grown at inf%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 681.31

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 19.27 MM has Fallen at -47.3%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 20.14 MM has Fallen at -41.37%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 34.46 % and Grown

In each half year 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

Interest

Highest at CNY 2.07 MM

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

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 14.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 19.27 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 20.14 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 23.83% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at CNY 0.38 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income