Zhejiang Runyang New Material Technology 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 Runyang New Material Technology Co., Ltd.

Why is Zhejiang Runyang New Material Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 9.21%

The company has been able to generate a Return on Capital Employed (avg) of 9.21% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -0.75% and Operating profit at -32.80% over the last 5 years

Negative results in Mar 26

INTEREST(HY) At CNY 3.5 MM has Grown at 432.6%
INTEREST COVERAGE RATIO(Q) Lowest at 495.33
PRE-TAX PROFIT(Q) At CNY 0.67 MM has Fallen at -84.77%

Underperformed the market in the last 1 year

The stock has generated a return of 6.45% in the last 1 year, much lower than market (China Shanghai Composite) returns of 16.78%

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 Other Industrial Products)

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

Is Zhejiang Runyang New Material Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Runyang New Material Technology Co., Ltd.

6.45%

2.68

53.07%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.75%

EBIT Growth (5y)

-32.80%

EBIT to Interest (avg)

22.23

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.30

Sales to Capital Employed (avg)

0.31

Tax Ratio

42.20%

Dividend Payout Ratio

28.52%

Pledged Shares

Institutional Holding

ROCE (avg)

9.21%

ROE (avg)

4.70%

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

65.11

EV to EBITDA

21.76

EV to Capital Employed

1.01

EV to Sales

2.86

PEG Ratio

0.32

Dividend Yield

0.20%

ROCE (Latest)

1.56%

ROE (Latest)

1.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

Mildly Bullish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 78.22 MM

NET PROFIT(9M)

At CNY 14.93 MM has Grown at 43.4%

RAW MATERIAL COST(Y)

Fallen by -99.37% (YoY

-30What is not working for the Company

INTEREST(HY)

At CNY 3.5 MM has Grown at 432.6%

INTEREST COVERAGE RATIO(Q)

Lowest at 495.33

PRE-TAX PROFIT(Q)

At CNY 0.67 MM has Fallen at -84.77%

DEBT-EQUITY RATIO (HY)

Highest at -0.88 %

CASH AND EQV(HY)

Lowest at CNY 645.33 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.56 times

NET SALES(Q)

Lowest at CNY 88.97 MM

OPERATING PROFIT(Q)

Lowest at CNY 8.53 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.59 %

NET PROFIT(Q)

Fallen at -37.97%

Here's what is working for Zhejiang Runyang New Material Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 78.22 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)

Raw Material Cost

Fallen by -99.37% (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 Runyang New Material Technology Co., Ltd.

Interest

At CNY 3.5 MM has Grown at 432.6%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 495.33 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

Pre-Tax Profit

At CNY 0.67 MM has Fallen at -84.77%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at -0.88 % 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

Net Sales

Lowest at CNY 88.97 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 8.53 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.59 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Fallen at -37.97%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Cash and Eqv

Lowest at CNY 645.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 3.56 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio