Zhejiang Double Arrow Rubber Co. Ltd. (002381) 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 Double Arrow Rubber Co. Ltd.

Why is Zhejiang Double Arrow Rubber Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 10.14% and Operating profit at -31.00% over the last 5 years

With a fall in Net Sales of -12.5%, the company declared Very Negative results in Sep 25

The company has declared negative results for the last 3 consecutive quarters
INTEREST(HY) At CNY 13.81 MM has Grown at 11%
PRE-TAX PROFIT(Q) At CNY 17.21 MM has Fallen at -56.68%
ROCE(HY) Lowest at 3.14%

Underperformed the market in the last 1 year

The stock has generated a return of 1.06% in the last 1 year, much lower than market (China Shanghai Composite) returns of 26.42%

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 Industrial Manufacturing)

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

Is Zhejiang Double Arrow Rubber Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Double Arrow Rubber Co. Ltd.

-0.75%

-0.07

22.95%

China Shanghai Composite

26.42%

2.04

12.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.14%

EBIT Growth (5y)

-31.00%

EBIT to Interest (avg)

42.21

Debt to EBITDA (avg)

0.73

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.87

Tax Ratio

15.59%

Dividend Payout Ratio

53.59%

Pledged Shares

Institutional Holding

ROCE (avg)

9.78%

ROE (avg)

9.13%

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

1.28

EV to EBIT

48.66

EV to EBITDA

17.08

EV to Capital Employed

1.23

EV to Sales

1.18

PEG Ratio

Dividend Yield

2.43%

ROCE (Latest)

2.52%

ROE (Latest)

4.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 4.3 times

-29What is not working for the Company

INTEREST(HY)

At CNY 13.81 MM has Grown at 11%

PRE-TAX PROFIT(Q)

At CNY 17.21 MM has Fallen at -56.68%

ROCE(HY)

Lowest at 3.14%

INTEREST COVERAGE RATIO(Q)

Lowest at 201.85

CASH AND EQV(HY)

Lowest at CNY 967.85 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.55 times

OPERATING PROFIT(Q)

Lowest at CNY 14.09 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.24 %

NET PROFIT(Q)

Lowest at CNY 9.75 MM

EPS(Q)

Lowest at CNY 0.02

Here's what is working for Zhejiang Double Arrow Rubber Co. Ltd.

Inventory Turnover Ratio

Highest at 4.3 times

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 Zhejiang Double Arrow Rubber Co. Ltd.

Pre-Tax Profit

At CNY 17.21 MM has Fallen at -56.68%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 9.75 MM has Fallen at -67.33%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 13.81 MM has Grown at 11%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 201.85

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 14.09 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.24 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 9.75 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 967.85 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 2.55 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio