Xinxiang Richful Lube Additive 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Xinxiang Richful Lube Additive Co., Ltd.

Why is Xinxiang Richful Lube Additive Co., Ltd. ?

The company has declared Negative results for the last 4 consecutive quarters

ROCE(HY) Lowest at 18.14%
INTEREST COVERAGE RATIO(Q) Lowest at 3,714.39
DEBT-EQUITY RATIO (HY) Highest at -19.83 %

Below par performance in long term as well as near term

Along with generating -18.13% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Chemicals & Petrochemicals)

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

Is Xinxiang Richful Lube Additive Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Xinxiang Richful Lube Additive Co., Ltd.

-16.87%

-0.07

36.10%

China Shanghai Composite

21.68%

1.63

13.30%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

38.48%

EBIT Growth (5y)

45.36%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.22

Sales to Capital Employed (avg)

0.80

Tax Ratio

12.77%

Dividend Payout Ratio

59.93%

Pledged Shares

Institutional Holding

ROCE (avg)

30.53%

ROE (avg)

16.33%

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

4.22

EV to EBIT

17.75

EV to EBITDA

16.20

EV to Capital Employed

5.05

EV to Sales

4.33

PEG Ratio

0.87

Dividend Yield

ROCE (Latest)

28.45%

ROE (Latest)

21.55%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

4What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 790.99 MM

RAW MATERIAL COST(Y)

Fallen by 0.54% (YoY

CASH AND EQV(HY)

Highest at CNY 3,549.93 MM

-26What is not working for the Company

ROCE(HY)

Lowest at 18.14%

INTEREST COVERAGE RATIO(Q)

Lowest at 3,714.39

DEBT-EQUITY RATIO (HY)

Highest at -19.83 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.87 times

INTEREST(Q)

Highest at CNY 4.36 MM

OPERATING PROFIT(Q)

Lowest at CNY 162.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 18.49 %

PRE-TAX PROFIT(Q)

Lowest at CNY 152.03 MM

NET PROFIT(Q)

Lowest at CNY 135.69 MM

EPS(Q)

Lowest at CNY 0.48

Here's what is working for Xinxiang Richful Lube Additive Co., Ltd.

Operating Cash Flow

Highest at CNY 790.99 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 3,549.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.54% (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 Xinxiang Richful Lube Additive Co., Ltd.

Interest

At CNY 4.36 MM has Grown at 26.74%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 3,714.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 4.36 MM

in the last five periods and Increased by 26.74% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 162.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 18.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 152.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 135.69 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.48

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -19.83 %

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

Debtors Turnover Ratio

Lowest at 4.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio