Zhejiang Tengen Electrics Co., Ltd. (605066) 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 Tengen Electrics Co., Ltd.

Why is Zhejiang Tengen Electrics Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 4.17% and Operating profit at -22.83% over the last 5 years

Negative results in Sep 25

INTEREST(HY) At CNY 0.57 MM has Grown at 386.32%
OPERATING CASH FLOW(Y) Lowest at CNY 173.13 MM
INTEREST COVERAGE RATIO(Q) Lowest at 5,288.23

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 -5.98% 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 Tengen Electrics Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Tengen Electrics Co., Ltd.

6.36%

1.61

34.20%

China Shanghai Composite

15.17%

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)

4.17%

EBIT Growth (5y)

-22.83%

EBIT to Interest (avg)

54.37

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

1.49

Tax Ratio

1.77%

Dividend Payout Ratio

145.83%

Pledged Shares

Institutional Holding

ROCE (avg)

10.03%

ROE (avg)

7.62%

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

2.11

EV to EBIT

34.55

EV to EBITDA

16.90

EV to Capital Employed

2.66

EV to Sales

1.11

PEG Ratio

Dividend Yield

1.54%

ROCE (Latest)

7.71%

ROE (Latest)

7.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-17What is not working for the Company

INTEREST(HY)

At CNY 0.57 MM has Grown at 386.32%

OPERATING CASH FLOW(Y)

Lowest at CNY 173.13 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 5,288.23

RAW MATERIAL COST(Y)

Grown by 10.82% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -35.84 %

OPERATING PROFIT(Q)

Lowest at CNY 9.75 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.36 %

Here's what is not working for Zhejiang Tengen Electrics Co., Ltd.

Interest

At CNY 0.57 MM has Grown at 386.32%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 173.13 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)

Interest Coverage Ratio

Lowest at 5,288.23

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 9.75 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.36 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -35.84 %

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 10.82% (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