Zhejiang Cady Industry 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

Zhejiang Cady Industry Co., Ltd.

Why is Zhejiang Cady Industry 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 6.90% and Operating profit at -1.85% 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 7.43% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.90% and Operating profit at -1.85% over the last 5 years

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

INTEREST(HY) At CNY 2.37 MM has Grown at 65.16%
OPERATING CASH FLOW(Y) Lowest at CNY 82.46 MM
DEBT-EQUITY RATIO (HY) Highest at -29.04 %

With ROE of 5.68%, it has a attractive valuation with a 0.36 Price to Book Value

Over the past year, while the stock has generated a return of 37.31%, its profits have fallen by -28.2%
At the current price, the company has a high dividend yield of 1.8

Market Beating Performance

The stock has generated a return of 37.31% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Cady Industry Co., Ltd. should be less than 10%
Overall Portfolio exposure to Footwear should be less than 30%

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

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

Is Zhejiang Cady Industry Co., Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Cady Industry Co., Ltd.

16.18%

1.28

28.12%

China Shanghai Composite

15.45%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.90%

EBIT Growth (5y)

-1.85%

EBIT to Interest (avg)

20.35

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.50

Tax Ratio

14.42%

Dividend Payout Ratio

34.76%

Pledged Shares

Institutional Holding

ROCE (avg)

12.45%

ROE (avg)

7.43%

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

0.36

EV to EBIT

1.25

EV to EBITDA

0.74

EV to Capital Employed

0.11

EV to Sales

0.14

PEG Ratio

Dividend Yield

1.75%

ROCE (Latest)

8.75%

ROE (Latest)

5.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

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

7What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 20.2 MM has Grown at 310.68%

NET PROFIT(Q)

At CNY 17.57 MM has Grown at 258.56%

RAW MATERIAL COST(Y)

Fallen by -15.21% (YoY

-17What is not working for the Company

INTEREST(HY)

At CNY 2.37 MM has Grown at 65.16%

OPERATING CASH FLOW(Y)

Lowest at CNY 82.46 MM

DEBT-EQUITY RATIO (HY)

Highest at -29.04 %

INTEREST COVERAGE RATIO(Q)

Lowest at 2,083.98

OPERATING PROFIT(Q)

Lowest at CNY 22.06 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.44 %

Here's what is working for Zhejiang Cady Industry Co., Ltd.

Pre-Tax Profit

At CNY 20.2 MM has Grown at 310.68%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 17.57 MM has Grown at 258.56%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -15.21% (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 Zhejiang Cady Industry Co., Ltd.

Interest

At CNY 2.37 MM has Grown at 65.16%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 82.46 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 2,083.98

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at -29.04 % 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

Operating Profit

Lowest at CNY 22.06 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.44 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales