Wuxi Zhenhua Auto Parts 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

Wuxi Zhenhua Auto Parts Co., Ltd.

Why is Wuxi Zhenhua Auto Parts Co., Ltd. ?

DEBT-EQUITY RATIO (HY) Highest at 28.97 %
INTEREST COVERAGE RATIO(Q) Lowest at 1,584.03
INTEREST(Q) Highest at CNY 9.57 MM

With ROE of 16.41%, it has a attractive valuation with a 3.52 Price to Book Value

Over the past year, while the stock has generated a return of 0.61%, its profits have risen by 22% ; the PEG ratio of the company is 1

Underperformed the market in the last 1 year

The stock has generated a return of 0.61% 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 hold?

Overall Portfolio exposure to Wuxi Zhenhua Auto Parts Co., Ltd. should be less than 10%
Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Wuxi Zhenhua Auto Parts Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Wuxi Zhenhua Auto Parts Co., Ltd.

-36.34%

0.44

51.93%

China Shanghai Composite

16.78%

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)

19.35%

EBIT Growth (5y)

109.14%

EBIT to Interest (avg)

11.55

Debt to EBITDA (avg)

0.86

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.76

Tax Ratio

16.81%

Dividend Payout Ratio

33.49%

Pledged Shares

Institutional Holding

ROCE (avg)

7.65%

ROE (avg)

9.81%

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

3.41

EV to EBIT

17.54

EV to EBITDA

12.51

EV to Capital Employed

2.96

EV to Sales

3.46

PEG Ratio

Dividend Yield

ROCE (Latest)

16.84%

ROE (Latest)

16.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 7.18 times

-14What is not working for the Company

INTEREST(HY)

At CNY 15.84 MM has Grown at 55.95%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,594.33

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.65 times

NET SALES(Q)

At CNY 669.32 MM has Fallen at -9.6%

OPERATING PROFIT(Q)

Lowest at CNY 126.97 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 18.97 %

Here's what is working for Wuxi Zhenhua Auto Parts Co., Ltd.

Inventory Turnover Ratio

Highest at 7.18 times and Grown

In each half year 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 Wuxi Zhenhua Auto Parts Co., Ltd.

Interest

At CNY 15.84 MM has Grown at 55.95%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,594.33

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 669.32 MM has Fallen at -9.6%

over average net sales of the previous four periods of CNY 740.42 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 126.97 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 18.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 1.65 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio