XCMG Construction Machinery Co., Ltd. (000425) 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

XCMG Construction Machinery Co., Ltd.

Why is XCMG Construction Machinery 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 8.92% and Operating profit at 20.04% 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 10.61% signifying low profitability per unit of shareholders funds

Flat results in Mar 25

OPERATING PROFIT(Q) Lowest at CNY 2,130.58 MM
OPERATING PROFIT MARGIN(Q) Lowest at 7.98 %

With ROE of 11.22%, it has a attractive valuation with a 1.59 Price to Book Value

Over the past year, while the stock has generated a return of 23.96%, its profits have risen by 34%
At the current price, the company has a high dividend yield of 2.2

Consistent Returns over the last 3 years

Along with generating 23.96% returns in the last 1 year, the stock has outperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to XCMG Construction Machinery Co., Ltd. should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

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

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

Is XCMG Construction Machinery Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

XCMG Construction Machinery Co., Ltd.

31.66%

1.23

32.59%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.92%

EBIT Growth (5y)

20.04%

EBIT to Interest (avg)

9.63

Debt to EBITDA (avg)

3.16

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

0.73

Tax Ratio

10.12%

Dividend Payout Ratio

35.29%

Pledged Shares

Institutional Holding

ROCE (avg)

10.99%

ROE (avg)

10.61%

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

1.59

EV to EBIT

17.86

EV to EBITDA

11.51

EV to Capital Employed

1.33

EV to Sales

1.49

PEG Ratio

Dividend Yield

2.21%

ROCE (Latest)

7.45%

ROE (Latest)

11.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

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

16What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 6,986.52 MM

NET PROFIT(HY)

At CNY 2,741.87 MM has Grown at 44.5%

ROCE(HY)

Highest at 10.73%

RAW MATERIAL COST(Y)

Fallen by -2.17% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 73 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.39%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.73%

NET SALES(Q)

Highest at CNY 26,687.2 MM

PRE-TAX PROFIT(Q)

Highest at CNY 2,335.63 MM

-3What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 2,130.58 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.98 %

Here's what is working for XCMG Construction Machinery Co., Ltd.

Operating Cash Flow

Highest at CNY 6,986.52 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Profit

At CNY 2,741.87 MM has Grown at 44.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 26,687.2 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 26,687.2 MM has Grown at 16.99%

over average net sales of the previous four periods of CNY 22,811.15 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 2,335.63 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Lowest at 73 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.39%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 1.73%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.17% (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 XCMG Construction Machinery Co., Ltd.

Operating Profit

Lowest at CNY 2,130.58 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales