Zhejiang Dun'an Artificial Environment Co., Ltd. (002011) 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 Dun'an Artificial Environment Co., Ltd.

Why is Zhejiang Dun'an Artificial Environment Co., Ltd. ?

Flat results in Mar 26

ROCE(HY) Lowest at 16.84%
INTEREST(Q) At CNY 5.5 MM has Grown at 65.37%
INVENTORY TURNOVER RATIO(HY) Lowest at 6.1 times

With ROE of 18.13%, it has a very attractive valuation with a 2.26 Price to Book Value

Over the past year, while the stock has generated a return of 5.64%, its profits have risen by 36.7% ; the PEG ratio of the company is 0.3

Underperformed the market in the last 1 year

The stock has generated a return of 5.64% in the last 1 year, much lower than market (China Shanghai Composite) returns of 20.36%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Dun'an Artificial Environment Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Zhejiang Dun'an Artificial Environment Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Dun'an Artificial Environment Co., Ltd.

5.64%

0.39

29.59%

China Shanghai Composite

20.36%

1.53

13.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.45%

EBIT Growth (5y)

31.58%

EBIT to Interest (avg)

8.18

Debt to EBITDA (avg)

2.15

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

1.51

Tax Ratio

11.22%

Dividend Payout Ratio

9.83%

Pledged Shares

Institutional Holding

ROCE (avg)

13.75%

ROE (avg)

16.07%

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

2.26

EV to EBIT

12.02

EV to EBITDA

10.15

EV to Capital Employed

2.39

EV to Sales

1.05

PEG Ratio

0.34

Dividend Yield

ROCE (Latest)

19.90%

ROE (Latest)

18.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,498.18 MM

RAW MATERIAL COST(Y)

Fallen by 0.96% (YoY

CASH AND EQV(HY)

Highest at CNY 6,876.28 MM

DEBT-EQUITY RATIO (HY)

Lowest at -22.3 %

-10What is not working for the Company

ROCE(HY)

Lowest at 16.84%

INTEREST(Q)

At CNY 5.5 MM has Grown at 65.37%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.1 times

OPERATING PROFIT(Q)

Lowest at CNY 188.87 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.18 %

PRE-TAX PROFIT(Q)

Lowest at CNY 192.05 MM

NET PROFIT(Q)

Lowest at CNY 196.23 MM

EPS(Q)

Lowest at CNY 0.18

Here's what is working for Zhejiang Dun'an Artificial Environment Co., Ltd.

Operating Cash Flow

Highest at CNY 1,498.18 MM and Grown

In each year 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 6,876.28 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -22.3 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.96% (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 Dun'an Artificial Environment Co., Ltd.

Interest

At CNY 5.5 MM has Grown at 65.37%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 188.87 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 6.18 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 192.05 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 196.23 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.18

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 6.1 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio