Zhejiang Founder Motor Co., Ltd. (002196) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Founder Motor Co., Ltd.

Why is Zhejiang Founder Motor Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 17.98% and Operating profit at 15.39% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 1.18% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 17.98% and Operating profit at 15.39% over the last 5 years

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

NET SALES(Q) At CNY 815.08 MM has Grown at 53.54%
PRE-TAX PROFIT(Q) At CNY 6.58 MM has Grown at 132.83%
NET PROFIT(Q) At CNY 11.63 MM has Grown at 177.33%

With ROE of 3.26%, it has a expensive valuation with a 4.60 Price to Book Value

Over the past year, while the stock has generated a return of 54.42%, its profits have risen by 242.9% ; the PEG ratio of the company is 0.6

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Founder Motor Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Zhejiang Founder Motor Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Founder Motor Co., Ltd.

4.29%

3.86

60.94%

China Shanghai Composite

3.23%

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)

17.98%

EBIT Growth (5y)

15.39%

EBIT to Interest (avg)

-5.39

Debt to EBITDA (avg)

9.67

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

0.89

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.20%

ROE (avg)

1.18%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

130

Industry P/E

Price to Book Value

4.23

EV to EBIT

260.26

EV to EBITDA

51.00

EV to Capital Employed

2.58

EV to Sales

2.35

PEG Ratio

0.53

Dividend Yield

ROCE (Latest)

0.99%

ROE (Latest)

3.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

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

27What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 244.09 MM

PRE-TAX PROFIT(Q)

At CNY 9.42 MM has Grown at 886.79%

CASH AND EQV(HY)

Highest at CNY 1,095.34 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.31 times

NET SALES(Q)

Highest at CNY 902.37 MM

NET PROFIT(Q)

At CNY 12.75 MM has Grown at 70.62%

-7What is not working for the Company

INTEREST(HY)

At CNY 15.83 MM has Grown at 11.91%

RAW MATERIAL COST(Y)

Grown by 9.12% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 105.01 %

Here's what is working for Zhejiang Founder Motor Co., Ltd.

Pre-Tax Profit

At CNY 9.42 MM has Grown at 886.79%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Highest at CNY 244.09 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)

Net Sales

Highest at CNY 902.37 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 902.37 MM has Grown at 22.93%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 12.75 MM has Grown at 70.62%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 1,095.34 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.31 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Zhejiang Founder Motor Co., Ltd.

Interest

At CNY 15.83 MM has Grown at 11.91%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 105.01 %

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

Raw Material Cost

Grown by 9.12% (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