Wuzhou Special Paper Group 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Wuzhou Special Paper Group Co., Ltd

Why is Wuzhou Special Paper Group 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 27.88% and Operating profit at -6.79% 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 13.09% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 27.88% and Operating profit at -6.79% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

NET PROFIT(HY) At CNY 99.54 MM has Grown at -66.8%
INTEREST(HY) At CNY 88.03 MM has Grown at 77.11%
INTEREST COVERAGE RATIO(Q) Lowest at 275.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.32% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Paper, Forest & Jute Products)

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

Is Wuzhou Special Paper Group Co., Ltd for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wuzhou Special Paper Group Co., Ltd

-12.32%

-0.59

20.32%

China Shanghai Composite

15.44%

1.06

14.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.88%

EBIT Growth (5y)

-6.79%

EBIT to Interest (avg)

5.89

Debt to EBITDA (avg)

5.01

Net Debt to Equity (avg)

1.55

Sales to Capital Employed (avg)

0.91

Tax Ratio

13.80%

Dividend Payout Ratio

27.90%

Pledged Shares

Institutional Holding

ROCE (avg)

9.17%

ROE (avg)

13.09%

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

1.32

EV to EBIT

26.47

EV to EBITDA

13.28

EV to Capital Employed

1.12

EV to Sales

1.29

PEG Ratio

Dividend Yield

ROCE (Latest)

4.22%

ROE (Latest)

7.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

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

INVENTORY TURNOVER RATIO(HY)

Highest at 8.86%

-25What is not working for the Company

NET PROFIT(HY)

At CNY 99.54 MM has Grown at -66.8%

INTEREST(HY)

At CNY 88.03 MM has Grown at 77.11%

INTEREST COVERAGE RATIO(Q)

Lowest at 275.8

OPERATING CASH FLOW(Y)

Lowest at CNY -325.58 MM

RAW MATERIAL COST(Y)

Grown by 37.69% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 123.4 MM

Here's what is working for Wuzhou Special Paper Group Co., Ltd

Inventory Turnover Ratio

Highest at 8.86%

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 Wuzhou Special Paper Group Co., Ltd

Interest

At CNY 88.03 MM has Grown at 77.11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 275.8 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Cash Flow

Lowest at CNY -325.58 MM

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 123.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Net Profit

At CNY 64.68 MM has Fallen at -28.5%

over average net sales of the previous four periods of CNY 90.46 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 37.69% (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