ScoreWhy is XCMG Construction Machinery Co., Ltd. ?
1
The company is Net-Debt Free
- Poor long term growth as Net Sales has grown by an annual rate of 4.05% and Operating profit at 12.30% over the last 5 years
- The company is Net-Debt Free
- The company has been able to generate a Return on Equity (avg) of 10.61% signifying low profitability per unit of shareholders funds
2
Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at CNY 15,731.59 MM
- DEBTORS TURNOVER RATIO(HY) Highest at 1.94 times
- RAW MATERIAL COST(Y) Fallen by -0.48% (YoY)
3
With ROE of 10.72%, it has a expensive valuation with a 1.78 Price to Book Value
- Over the past year, while the stock has generated a return of 5.10%, its profits have risen by 2.9%
- At the current price, the company has a high dividend yield of 1.9
4
Underperformed the market in the last 1 year
- The stock has generated a return of 5.10% in the last 1 year, much lower than market (China Shanghai Composite) returns of 19.22%
Real-Time Research ReportHow 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, Low Return
Absolute
Risk Adjusted
Volatility
XCMG Construction Machinery Co., Ltd.
5.1%
0.25
41.37%
China Shanghai Composite
19.22%
1.40
13.75%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
4.05%
EBIT Growth (5y)
12.30%
EBIT to Interest (avg)
9.63
Debt to EBITDA (avg)
3.16
Net Debt to Equity (avg)
0.72
Sales to Capital Employed (avg)
0.75
Tax Ratio
10.12%
Dividend Payout Ratio
35.09%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
10.99%
ROE (avg)
10.61%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
1.78
EV to EBIT
18.22
EV to EBITDA
13.00
EV to Capital Employed
1.47
EV to Sales
1.48
PEG Ratio
NA
Dividend Yield
1.91%
ROCE (Latest)
8.05%
ROE (Latest)
10.72%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 15,731.59 MM
DEBTORS TURNOVER RATIO(HY)
Highest at 1.94 times
RAW MATERIAL COST(Y)
Fallen by -0.48% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 67.96 %
NET SALES(Q)
Highest at CNY 29,790.57 MM
-3What is not working for the Company
INTEREST(Q)
At CNY 306.68 MM has Grown at 86.68%
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.29 times
Here's what is working for XCMG Construction Machinery Co., Ltd.
Operating Cash Flow
Highest at CNY 15,731.59 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Debtors Turnover Ratio
Highest at 1.94 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Net Sales
Highest at CNY 29,790.57 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Net Sales
At CNY 29,790.57 MM has Grown at 17.66%
over average net sales of the previous four periods of CNY 25,318.56 MMMOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Debt-Equity Ratio
Lowest at 67.96 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -0.48% (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.
Interest
At CNY 306.68 MM has Grown at 86.68%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Inventory Turnover Ratio
Lowest at 2.29 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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