Wuxi Best Precision Machinery Co., Ltd. (300580) 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

Wuxi Best Precision Machinery Co., Ltd.

Why is Wuxi Best Precision Machinery Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.66% and Operating profit at 4.56% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 100.22 MM
ROCE(HY) Lowest at 8.63%
CASH AND EQV(HY) Lowest at CNY 1,393.15 MM

With ROE of 8.33%, it has a expensive valuation with a 3.58 Price to Book Value

Over the past year, while the stock has generated a return of -10.88%, its profits have fallen by -3%
At the current price, the company has a high dividend yield of 0.5

Below par performance in long term as well as near term

Along with generating -10.88% 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 Wuxi Best Precision Machinery Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Wuxi Best Precision Machinery Co., Ltd.

-19.12%

0.48

40.17%

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)

8.66%

EBIT Growth (5y)

4.56%

EBIT to Interest (avg)

78.51

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

0.45

Tax Ratio

10.75%

Dividend Payout Ratio

30.61%

Pledged Shares

Institutional Holding

ROCE (avg)

11.07%

ROE (avg)

9.93%

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

3.58

EV to EBIT

42.13

EV to EBITDA

27.11

EV to Capital Employed

4.17

EV to Sales

7.42

PEG Ratio

Dividend Yield

0.48%

ROCE (Latest)

9.89%

ROE (Latest)

8.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -3.33% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 3.44 times

-11What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 100.22 MM

ROCE(HY)

Lowest at 8.63%

CASH AND EQV(HY)

Lowest at CNY 1,393.15 MM

DEBT-EQUITY RATIO (HY)

Highest at -18.4 %

OPERATING PROFIT(Q)

Lowest at CNY 71.2 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 18.45 %

Here's what is working for Wuxi Best Precision Machinery Co., Ltd.

Inventory Turnover Ratio

Highest at 3.44 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -3.33% (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 Wuxi Best Precision Machinery Co., Ltd.

Operating Cash Flow

Lowest at CNY 100.22 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)

Operating Profit

Lowest at CNY 71.2 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 18.45 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 1,393.15 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -18.4 %

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