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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Wanma Co., Ltd.

Why is Zhejiang Wanma 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 15.69% and Operating profit at 2.42% 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 7.91% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 15.69% and Operating profit at 2.42% over the last 5 years

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

NET PROFIT(9M) At CNY 212.93 MM has Grown at -34.78%
OPERATING CASH FLOW(Y) Lowest at CNY 195.67 MM
DEBT-EQUITY RATIO (HY) Highest at 91.43 %

With ROE of 6.36%, it has a expensive valuation with a 3.60 Price to Book Value

Over the past year, while the stock has generated a return of 118.64%, its profits have fallen by -20%
At the current price, the company has a high dividend yield of 0.2

Market Beating performance in long term as well as near term

Along with generating 118.64% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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.

86.6%

2.30

55.75%

China Shanghai Composite

14.77%

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)

15.69%

EBIT Growth (5y)

2.42%

EBIT to Interest (avg)

5.59

Debt to EBITDA (avg)

6.31

Net Debt to Equity (avg)

0.90

Sales to Capital Employed (avg)

1.36

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

3.60

EV to EBIT

125.08

EV to EBITDA

54.52

EV to Capital Employed

2.22

EV to Sales

1.52

PEG Ratio

Dividend Yield

0.24%

ROCE (Latest)

1.78%

ROE (Latest)

6.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

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

2What is working for the Company

NET SALES(HY)

At CNY 8,677.25 MM has Grown at 21.39%

-11What is not working for the Company

NET PROFIT(9M)

At CNY 212.93 MM has Grown at -34.78%

OPERATING CASH FLOW(Y)

Lowest at CNY 195.67 MM

DEBT-EQUITY RATIO (HY)

Highest at 91.43 %

INTEREST COVERAGE RATIO(Q)

Lowest at 306.95

OPERATING PROFIT(Q)

Lowest at CNY 31.11 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.79 %

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

Net Sales

At CNY 8,677.25 MM has Grown at 21.39%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

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

Net Profit

At CNY 212.93 MM has Grown at -34.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 306.95

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 91.43 % 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 195.67 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY 31.11 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.79 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales