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

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 8.47% and Operating profit at 20.76% 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

Positive results in Sep 25

OPERATING CASH FLOW(Y) Highest at CNY 10,012.49 MM
ROCE(HY) Highest at 11.19%
DEBTORS TURNOVER RATIO(HY) Highest at 1.82 times

With ROE of 11.22%, it has a fair valuation with a 2.04 Price to Book Value

Over the past year, while the stock has generated a return of 20.27%, its profits have risen by 34%
At the current price, the company has a high dividend yield of 1.7

Consistent Returns over the last 3 years

Along with generating 20.27% 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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

XCMG Construction Machinery Co., Ltd.

20.27%

1.16

35.86%

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)

8.47%

EBIT Growth (5y)

20.76%

EBIT to Interest (avg)

9.63

Debt to EBITDA (avg)

3.16

Net Debt to Equity (avg)

0.72

Sales to Capital Employed (avg)

0.74

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

2.04

EV to EBIT

21.27

EV to EBITDA

13.70

EV to Capital Employed

1.58

EV to Sales

1.77

PEG Ratio

Dividend Yield

1.72%

ROCE (Latest)

7.45%

ROE (Latest)

11.22%

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

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 10,012.49 MM

ROCE(HY)

Highest at 11.19%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.82 times

-4What is not working for the Company

INTEREST(HY)

At CNY 648.58 MM has Grown at 10.76%

DEBT-EQUITY RATIO (HY)

Highest at 90.18 %

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

Operating Cash Flow

Highest at CNY 10,012.49 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)

Debtors Turnover Ratio

Highest at 1.82 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for XCMG Construction Machinery Co., Ltd.

Interest

At CNY 648.58 MM has Grown at 10.76%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 90.18 %

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