Zhejiang Wanma Co., Ltd. (002276) 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 Wanma Co., Ltd.

Why is Zhejiang Wanma Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 15.37% and Operating profit at 10.98% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 7.91% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 15.37% and Operating profit at 10.98% over the last 5 years

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

OPERATING CASH FLOW(Y) Lowest at CNY -335.16 MM
DEBT-EQUITY RATIO (HY) Highest at 100.87 %
INVENTORY TURNOVER RATIO(HY) Lowest at 11.98 times

With ROE of 6.36%, it has a expensive valuation with a 3.04 Price to Book Value

Over the past year, while the stock has generated a return of -11.25%, its profits have fallen by -20%
At the current price, the company has a high dividend yield of 0.3

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 24.70% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.25% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zhejiang Wanma 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 Wanma Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Wanma Co., Ltd.

-11.25%

1.90

39.82%

China Shanghai Composite

24.7%

1.91

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.37%

EBIT Growth (5y)

10.98%

EBIT to Interest (avg)

5.59

Debt to EBITDA (avg)

6.31

Net Debt to Equity (avg)

0.90

Sales to Capital Employed (avg)

1.34

Tax Ratio

6.50%

Dividend Payout Ratio

14.59%

Pledged Shares

Institutional Holding

ROCE (avg)

3.86%

ROE (avg)

7.91%

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

3.04

EV to EBIT

110.18

EV to EBITDA

48.03

EV to Capital Employed

1.96

EV to Sales

1.33

PEG Ratio

Dividend Yield

0.29%

ROCE (Latest)

1.78%

ROE (Latest)

6.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

12What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 177.84 MM has Grown at 282.97%

NET PROFIT(Q)

At CNY 156.29 MM has Grown at 244.1%

RAW MATERIAL COST(Y)

Fallen by -30.68% (YoY

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -335.16 MM

DEBT-EQUITY RATIO (HY)

Highest at 100.87 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.98 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.3 times

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

Pre-Tax Profit

At CNY 177.84 MM has Grown at 282.97%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 156.29 MM has Grown at 244.1%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -30.68% (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 Wanma Co., Ltd.

Debt-Equity Ratio

Highest at 100.87 % 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 Cash Flow

Lowest at CNY -335.16 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Lowest at 11.98 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 2.3 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio