Zhejiang Xinao Textiles, Inc. (603889) 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 Xinao Textiles, Inc.

Why is Zhejiang Xinao Textiles, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 16.93% and Operating profit at 60.49% over the last 5 years

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

INTEREST(HY) At CNY 25.2 MM has Grown at 27.51%
ROCE(HY) Lowest at 12.55%
INTEREST COVERAGE RATIO(Q) Lowest at 1,106.36

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 Garments & Apparels)

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

Is Zhejiang Xinao Textiles, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Xinao Textiles, Inc.

17.98%

0.50

33.51%

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)

16.93%

EBIT Growth (5y)

60.49%

EBIT to Interest (avg)

16.39

Debt to EBITDA (avg)

0.67

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

0.92

Tax Ratio

13.38%

Dividend Payout Ratio

50.85%

Pledged Shares

Institutional Holding

ROCE (avg)

11.42%

ROE (avg)

11.64%

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

1.32

EV to EBIT

11.48

EV to EBITDA

8.20

EV to Capital Employed

1.23

EV to Sales

1.22

PEG Ratio

2.71

Dividend Yield

4.66%

ROCE (Latest)

10.75%

ROE (Latest)

13.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.91% (YoY

-16What is not working for the Company

INTEREST(HY)

At CNY 25.2 MM has Grown at 27.51%

ROCE(HY)

Lowest at 12.55%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,106.36

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.12 times

OPERATING PROFIT MARGIN(Q)

Lowest at 9.97 %

Here's what is working for Zhejiang Xinao Textiles, Inc.

Raw Material Cost

Fallen by -9.91% (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 Xinao Textiles, Inc.

Interest

At CNY 25.2 MM has Grown at 27.51%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,106.36

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 9.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 6.12 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio