Zhejiang Wazam New Material Co., Ltd. (603186) 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 Wazam New Material Co., Ltd.

Why is Zhejiang Wazam New Material Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.82%

Poor long term growth as Net Sales has grown by an annual rate of 15.12% and Operating profit at -166.52% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

With a growth in Net Sales of 3.33%, the company declared Very Positive results in Sep 25

PRE-TAX PROFIT(Q) At CNY 18.94 MM has Grown at 225.28%
OPERATING CASH FLOW(Y) Highest at CNY 312.37 MM
ROCE(HY) Highest at -1.84%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 207.44%, its profits have risen by 38.8%

Market Beating performance in long term as well as near term

Along with generating 207.44% 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 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 Minerals & Mining)

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

Is Zhejiang Wazam New Material Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Wazam New Material Co., Ltd.

764.18%

4.33

56.66%

China Shanghai Composite

21.43%

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)

11.62%

EBIT Growth (5y)

-11.92%

EBIT to Interest (avg)

1.52

Debt to EBITDA (avg)

29.10

Net Debt to Equity (avg)

1.97

Sales to Capital Employed (avg)

0.80

Tax Ratio

3.76%

Dividend Payout Ratio

6.67%

Pledged Shares

Institutional Holding

ROCE (avg)

2.82%

ROE (avg)

4.66%

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

8.18

EV to EBIT

201.29

EV to EBITDA

84.26

EV to Capital Employed

4.62

EV to Sales

4.69

PEG Ratio

0.14

Dividend Yield

0.10%

ROCE (Latest)

2.29%

ROE (Latest)

12.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

21What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 624.32 MM

NET PROFIT(HY)

Higher at CNY 245.75 MM

ROCE(HY)

Highest at 15.16%

NET SALES(Q)

Highest at CNY 1,234.29 MM

RAW MATERIAL COST(Y)

Fallen by -6.06% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 98.53 %

-10What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY 29.61 MM has Fallen at -62.01%

INTEREST COVERAGE RATIO(Q)

Lowest at 327.23

NET PROFIT(Q)

At CNY 30.92 MM has Fallen at -55.28%

CASH AND EQV(HY)

Lowest at CNY 921.12 MM

OPERATING PROFIT(Q)

Lowest at CNY 34.03 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.76 %

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

Net Sales

Highest at CNY 1,234.29 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 624.32 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Lowest at 98.53 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -6.06% (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 Wazam New Material Co., Ltd.

Pre-Tax Profit

At CNY 29.61 MM has Fallen at -62.01%

over average net sales of the previous four periods of CNY 77.95 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest Coverage Ratio

Lowest at 327.23

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Profit

At CNY 30.92 MM has Fallen at -55.28%

over average net sales of the previous four periods of CNY 69.15 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 34.03 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 921.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents