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

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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 11.29% and Operating profit at -25.92% over the last 5 years

With a fall in Net Sales of -1.55%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY -4.8 MM
INTEREST(HY) At CNY 12.28 MM has Grown at 10.03%
INTEREST COVERAGE RATIO(Q) Lowest at 390.18

Underperformed the market in the last 1 year

The stock has generated a return of 1.74% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Double Arrow Rubber Co. Ltd.

-2.03%

0.13

25.50%

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)

11.29%

EBIT Growth (5y)

-25.92%

EBIT to Interest (avg)

42.21

Debt to EBITDA (avg)

0.73

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

0.86

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

1.01

EV to EBIT

40.12

EV to EBITDA

14.09

EV to Capital Employed

1.01

EV to Sales

0.97

PEG Ratio

Dividend Yield

3.07%

ROCE (Latest)

2.52%

ROE (Latest)

4.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-33What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -4.8 MM

INTEREST(HY)

At CNY 12.28 MM has Grown at 10.03%

INTEREST COVERAGE RATIO(Q)

Lowest at 390.18

ROCE(HY)

Lowest at 5.94%

OPERATING PROFIT MARGIN(Q)

Lowest at 4.05 %

PRE-TAX PROFIT(Q)

At CNY 33.05 MM has Fallen at -45.01%

NET PROFIT(Q)

At CNY 25.2 MM has Fallen at -49.26%

RAW MATERIAL COST(Y)

Grown by 20.84% (YoY

CASH AND EQV(HY)

Lowest at CNY 872.51 MM

DEBT-EQUITY RATIO (HY)

Highest at 22.9 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.86%

OPERATING PROFIT(Q)

Lowest at CNY 24.73 MM

Here's what is not working for Zhejiang Double Arrow Rubber Co. Ltd.

Interest Coverage Ratio

Lowest at 390.18 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 12.28 MM has Grown at 10.03%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -4.8 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)

Operating Profit Margin

Lowest at 4.05 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CNY 33.05 MM has Fallen at -45.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 25.2 MM has Fallen at -49.26%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 24.73 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Cash and Eqv

Lowest at CNY 872.51 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 22.9 %

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 3.86%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 20.84% (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