Zhejiang Mustang Battery 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 Mustang Battery Co., Ltd.

Why is Zhejiang Mustang Battery Co., Ltd. ?

The company has declared negative results for the last 2 consecutive quarters

INTEREST(HY) At CNY 0 MM has Grown at 63.41%
OPERATING CASH FLOW(Y) Lowest at CNY 56.91 MM
PRE-TAX PROFIT(Q) At CNY 26 MM has Fallen at -52.5%

With ROE of 9.43%, it has a expensive valuation with a 5.69 Price to Book Value

Over the past year, while the stock has generated a return of -1.27%, its profits have fallen by -13.2%
At the current price, the company has a high dividend yield of 2.9

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -1.27% returns

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 Electronics & Appliances)

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

Is Zhejiang Mustang Battery Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Mustang Battery Co., Ltd.

16.16%

1.52

57.81%

China Shanghai Composite

17.07%

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)

1.89%

EBIT Growth (5y)

-12.11%

EBIT to Interest (avg)

88.37

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.51

Sales to Capital Employed (avg)

0.92

Tax Ratio

13.96%

Dividend Payout Ratio

43.64%

Pledged Shares

Institutional Holding

ROCE (avg)

16.54%

ROE (avg)

8.43%

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

5.69

EV to EBIT

62.33

EV to EBITDA

45.82

EV to Capital Employed

9.31

EV to Sales

4.77

PEG Ratio

Dividend Yield

2.87%

ROCE (Latest)

14.93%

ROE (Latest)

9.43%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 6.02 times

NET SALES(Q)

Highest at CNY 443.44 MM

-31What is not working for the Company

INTEREST(HY)

At CNY 0 MM has Grown at 63.41%

OPERATING CASH FLOW(Y)

Lowest at CNY 56.91 MM

PRE-TAX PROFIT(Q)

At CNY 26 MM has Fallen at -52.5%

ROCE(HY)

Lowest at 7.24%

DEBT-EQUITY RATIO (HY)

Highest at -32.23 %

NET PROFIT(Q)

At CNY 23.62 MM has Fallen at -50.4%

RAW MATERIAL COST(Y)

Grown by 32.65% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.7 times

OPERATING PROFIT MARGIN(Q)

Lowest at 5.76 %

Here's what is working for Zhejiang Mustang Battery Co., Ltd.

Net Sales

Highest at CNY 443.44 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 6.02 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 Mustang Battery Co., Ltd.

Interest

At CNY 0 MM has Grown at 63.41%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 26 MM has Fallen at -52.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 56.91 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)

Net Profit

At CNY 23.62 MM has Fallen at -50.4%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at -32.23 % 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 Margin

Lowest at 5.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 3.7 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 32.65% (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