Zhejiang Wanfeng Auto Wheel Co., Ltd. (002085) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Wanfeng Auto Wheel Co., Ltd.

Why is Zhejiang Wanfeng Auto Wheel Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 9.99% and Operating profit at 6.29% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 15.42% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.99% and Operating profit at 6.29% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY 1,373.11 MM
NET PROFIT(HY) At CNY 414.47 MM has Grown at -39.84%
ROCE(HY) Lowest at 9.91%

With ROE of 13.60%, it has a very expensive valuation with a 5.31 Price to Book Value

Over the past year, while the stock has generated a return of -24.01%, its profits have fallen by -27.3%
At the current price, the company has a high dividend yield of 0.5

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -24.01% 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 Auto Components & Equipments)

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

Is Zhejiang Wanfeng Auto Wheel Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zhejiang Wanfeng Auto Wheel Co., Ltd.

-16.18%

0.34

43.48%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.99%

EBIT Growth (5y)

6.29%

EBIT to Interest (avg)

4.69

Debt to EBITDA (avg)

1.95

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

1.38

Tax Ratio

18.95%

Dividend Payout Ratio

31.73%

Pledged Shares

Institutional Holding

ROCE (avg)

12.27%

ROE (avg)

15.42%

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

5.31

EV to EBIT

41.10

EV to EBITDA

25.82

EV to Capital Employed

4.16

EV to Sales

2.60

PEG Ratio

Dividend Yield

0.54%

ROCE (Latest)

10.13%

ROE (Latest)

13.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

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

6What is working for the Company

CASH AND EQV(HY)

Highest at CNY 3,983.75 MM

DEBT-EQUITY RATIO (HY)

Lowest at 36.11 %

INVENTORY TURNOVER RATIO(HY)

Highest at 4.44%

PRE-TAX PROFIT(Q)

Highest at CNY 433.14 MM

NET PROFIT(Q)

Highest at CNY 275.07 MM

EPS(Q)

Highest at CNY 0.13

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,373.11 MM

NET PROFIT(HY)

At CNY 414.47 MM has Grown at -39.84%

ROCE(HY)

Lowest at 9.91%

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.6%

Here's what is working for Zhejiang Wanfeng Auto Wheel Co., Ltd.

Pre-Tax Profit

Highest at CNY 433.14 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 275.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.13

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 3,983.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 36.11 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 4.44%

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 Wanfeng Auto Wheel Co., Ltd.

Operating Cash Flow

Lowest at CNY 1,373.11 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)

Debtors Turnover Ratio

Lowest at 3.6% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio