Zhengzhou Coal Industry & Electric Power Co., Ltd. (600121) 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

Zhengzhou Coal Industry & Electric Power Co., Ltd.

Why is Zhengzhou Coal Industry & Electric Power Co., Ltd. ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of 6.65% and Operating profit at 12.83% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
NET PROFIT(Q) At CNY -158.24 MM has Fallen at -6,123.8%
OPERATING CASH FLOW(Y) Lowest at CNY 170.44 MM
ROCE(HY) Lowest at -7.07%

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 31.37%, its profits have risen by 19.2% ; the PEG ratio of the company is 1.5

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 Miscellaneous)

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

Is Zhengzhou Coal Industry & Electric Power Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhengzhou Coal Industry & Electric Power Co., Ltd.

26.34%

0.89

46.77%

China Shanghai Composite

21.22%

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)

6.65%

EBIT Growth (5y)

12.83%

EBIT to Interest (avg)

1.22

Debt to EBITDA (avg)

4.74

Net Debt to Equity (avg)

2.01

Sales to Capital Employed (avg)

0.49

Tax Ratio

95.19%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.99%

ROE (avg)

10.81%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

278

Industry P/E

Price to Book Value

4.49

EV to EBIT

-78.26

EV to EBITDA

42.63

EV to Capital Employed

2.02

EV to Sales

2.89

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.58%

ROE (Latest)

1.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

1What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 35.01 times

-34What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -163.07 MM has Fallen at -432.96%

NET PROFIT(Q)

At CNY -195.52 MM has Fallen at -224.78%

ROCE(HY)

Lowest at -82.92%

RAW MATERIAL COST(Y)

Grown by 51.89% (YoY

CASH AND EQV(HY)

Lowest at CNY 5,663.32 MM

DEBT-EQUITY RATIO (HY)

Highest at 548.16 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.47 times

NET SALES(Q)

Lowest at CNY 732.73 MM

INTEREST(Q)

Highest at CNY 51.45 MM

Here's what is working for Zhengzhou Coal Industry & Electric Power Co., Ltd.

Inventory Turnover Ratio

Highest at 35.01 times

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 Zhengzhou Coal Industry & Electric Power Co., Ltd.

Net Sales

At CNY 732.73 MM has Fallen at -24.2%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -163.07 MM has Fallen at -432.96%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -195.52 MM has Fallen at -224.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 51.45 MM has Grown at 49.68%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 732.73 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 51.45 MM

in the last five periods and Increased by 49.68% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 5,663.32 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 548.16 %

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

Debtors Turnover Ratio

Lowest at 2.47 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 51.89% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales