Xinzhi Group Co., Ltd. (002664) 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

Xinzhi Group Co., Ltd.

Why is Xinzhi Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.37%

The company has been able to generate a Return on Capital Employed (avg) of 2.37% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 14.77% and Operating profit at -2.21% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 6.24% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 14.77% and Operating profit at -2.21% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 143.35 MM
INTEREST COVERAGE RATIO(Q) Lowest at 358.2
DEBT-EQUITY RATIO (HY) Highest at 117.64 %

With ROE of 4.24%, it has a fair valuation with a 2.11 Price to Book Value

Over the past year, while the stock has generated a return of 11.25%, its profits have risen by 791.5% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.3

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 Auto Components & Equipments)

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

Is Xinzhi Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Xinzhi Group Co., Ltd.

-25.0%

1.11

52.04%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.77%

EBIT Growth (5y)

-2.21%

EBIT to Interest (avg)

4.04

Debt to EBITDA (avg)

11.31

Net Debt to Equity (avg)

1.01

Sales to Capital Employed (avg)

0.64

Tax Ratio

11.98%

Dividend Payout Ratio

18.32%

Pledged Shares

Institutional Holding

ROCE (avg)

2.03%

ROE (avg)

6.24%

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

1.95

EV to EBIT

59.75

EV to EBITDA

26.32

EV to Capital Employed

1.44

EV to Sales

1.79

PEG Ratio

0.06

Dividend Yield

0.35%

ROCE (Latest)

2.41%

ROE (Latest)

4.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

10What is working for the Company

NET PROFIT(HY)

At CNY 39.19 MM has Grown at 164.27%

RAW MATERIAL COST(Y)

Fallen by -61.9% (YoY

CASH AND EQV(HY)

Highest at CNY 4,296.97 MM

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 143.35 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 358.2

DEBT-EQUITY RATIO (HY)

Highest at 117.64 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 4.45 times

NET SALES(Q)

At CNY 1,390.1 MM has Fallen at -8.88%

OPERATING PROFIT(Q)

Lowest at CNY 48.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.46 %

Here's what is working for Xinzhi Group Co., Ltd.

Net Profit

At CNY 39.19 MM has Grown at 164.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 4,296.97 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -61.9% (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 Xinzhi Group Co., Ltd.

Operating Cash Flow

Lowest at CNY 143.35 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)

Interest Coverage Ratio

Lowest at 358.2

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 1,390.1 MM has Fallen at -8.88%

over average net sales of the previous four periods of CNY 1,525.58 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 48.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.46 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 117.64 %

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

Inventory Turnover Ratio

Lowest at 4.45 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio