Wuxi Smart Auto-Control Engineering Co., Ltd. (002877) 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 Smart Auto-Control Engineering Co., Ltd.

Why is Wuxi Smart Auto-Control Engineering Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 16.72% and Operating profit at -8.84% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.92% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 16.72% and Operating profit at -8.84% over the last 5 years

The company has declared negative results for the last 4 consecutive quarters

PRE-TAX PROFIT(Q) At CNY -5.42 MM has Fallen at -297.34%
NET PROFIT(Q) At CNY -3.46 MM has Fallen at -298.46%
ROCE(HY) Lowest at 0.5%

With ROE of 0.70%, it has a very expensive valuation with a 2.51 Price to Book Value

Over the past year, while the stock has generated a return of 0.46%, its profits have fallen by -91.1%

Underperformed the market in the last 1 year

The stock has generated a return of 0.46% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.17%

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 Industrial Manufacturing)

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

Is Wuxi Smart Auto-Control Engineering Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Wuxi Smart Auto-Control Engineering Co., Ltd.

1.73%

0.38

42.34%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.72%

EBIT Growth (5y)

-8.84%

EBIT to Interest (avg)

6.01

Debt to EBITDA (avg)

4.77

Net Debt to Equity (avg)

0.61

Sales to Capital Employed (avg)

0.51

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

31.20%

Pledged Shares

Institutional Holding

ROCE (avg)

5.47%

ROE (avg)

6.92%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

360

Industry P/E

Price to Book Value

2.51

EV to EBIT

139.12

EV to EBITDA

35.40

EV to Capital Employed

1.93

EV to Sales

3.68

PEG Ratio

Dividend Yield

0.22%

ROCE (Latest)

1.39%

ROE (Latest)

0.70%

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

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 46.34 MM

RAW MATERIAL COST(Y)

Fallen by -8.32% (YoY

CASH AND EQV(HY)

Highest at CNY 442.68 MM

NET SALES(Q)

At CNY 294.6 MM has Grown at 23.31%

-31What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -5.42 MM has Fallen at -297.34%

NET PROFIT(Q)

At CNY -3.46 MM has Fallen at -298.46%

ROCE(HY)

Lowest at 0.5%

INTEREST COVERAGE RATIO(Q)

Lowest at 66.06

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.41 times

INTEREST(Q)

Highest at CNY 22.77 MM

Here's what is working for Wuxi Smart Auto-Control Engineering Co., Ltd.

Operating Cash Flow

Highest at CNY 46.34 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 294.6 MM has Grown at 23.31%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 442.68 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -8.32% (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 Smart Auto-Control Engineering Co., Ltd.

Pre-Tax Profit

At CNY -5.42 MM has Fallen at -297.34%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -3.46 MM has Fallen at -298.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 22.77 MM has Grown at 153.56%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 66.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 22.77 MM

in the last five periods and Increased by 153.56% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 1.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio