Xinjiang Lixin Energy 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

Xinjiang Lixin Energy Co., Ltd.

Why is Xinjiang Lixin Energy Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 5.32%

Poor long term growth as Net Sales has grown by an annual rate of -0.52% and Operating profit at -25.90% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(9M) At CNY -70.43 MM has Grown at -352.18%
OPERATING CASH FLOW(Y) Lowest at CNY 385.56 MM
NET SALES(9M) At CNY 636.22 MM has Grown at -9.38%

With ROE of -1.12%, it has a risky valuation with a 2.26 Price to Book Value

Over the past year, while the stock has generated a return of 21.39%, its profits have fallen by -125.9%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Xinjiang Lixin Energy Co., Ltd. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

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

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

Is Xinjiang Lixin Energy Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Xinjiang Lixin Energy Co., Ltd.

9.75%

0.82

43.49%

China Shanghai Composite

15.19%

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)

-0.52%

EBIT Growth (5y)

-25.90%

EBIT to Interest (avg)

1.70

Debt to EBITDA (avg)

8.35

Net Debt to Equity (avg)

3.13

Sales to Capital Employed (avg)

0.09

Tax Ratio

49.70%

Dividend Payout Ratio

31.60%

Pledged Shares

Institutional Holding

ROCE (avg)

5.32%

ROE (avg)

5.18%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.26

EV to EBIT

106.57

EV to EBITDA

28.52

EV to Capital Employed

1.30

EV to Sales

17.24

PEG Ratio

Dividend Yield

ROCE (Latest)

1.22%

ROE (Latest)

-1.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

3What is working for the Company

NET PROFIT(Q)

At CNY 18.32 MM has Grown at 174%

INVENTORY TURNOVER RATIO(HY)

Highest at 4,925.51%

-20What is not working for the Company

NET PROFIT(9M)

At CNY -70.43 MM has Grown at -352.18%

OPERATING CASH FLOW(Y)

Lowest at CNY 385.56 MM

NET SALES(9M)

At CNY 636.22 MM has Grown at -9.38%

ROCE(HY)

Lowest at -1.09%

DEBT-EQUITY RATIO (HY)

Highest at 384.42 %

RAW MATERIAL COST(Y)

Grown by 17.02% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.36%

Here's what is working for Xinjiang Lixin Energy Co., Ltd.

Net Profit

At CNY 18.32 MM has Grown at 174%

over average net sales of the previous four periods of CNY 6.68 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 4,925.51%

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 Xinjiang Lixin Energy Co., Ltd.

Operating Cash Flow

Lowest at CNY 385.56 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at 384.42 % and Grown

In each half year 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

Net Sales

At CNY 636.22 MM has Grown at -9.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 0.36%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 17.02% (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

Non Operating Income

Highest at CNY 0.92 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income