ZRP Printing Group Co., Ltd. () 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

ZRP Printing Group Co., Ltd.

Why is ZRP Printing Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 6.60% and Operating profit at -11.22% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 3,033.8
INTEREST(9M) At CNY 4.79 MM has Grown at 12.06%
DEBT-EQUITY RATIO (HY) Highest at -6.12 %

With ROE of 5.33%, it has a very attractive valuation with a 0.60 Price to Book Value

Over the past year, while the stock has generated a return of -1.47%, its profits have risen by 14.3% ; the PEG ratio of the company is 0.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.47% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to ZRP Printing Group Co., Ltd. should be less than 10%
Overall Portfolio exposure to Packaging should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Packaging)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is ZRP Printing Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

ZRP Printing Group Co., Ltd.

-2.34%

0.52

26.71%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.60%

EBIT Growth (5y)

-11.22%

EBIT to Interest (avg)

82.13

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

0.84

Tax Ratio

10.04%

Dividend Payout Ratio

43.80%

Pledged Shares

Institutional Holding

ROCE (avg)

11.06%

ROE (avg)

9.09%

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

0.60

EV to EBIT

9.40

EV to EBITDA

4.74

EV to Capital Employed

0.56

EV to Sales

0.47

PEG Ratio

0.78

Dividend Yield

ROCE (Latest)

5.95%

ROE (Latest)

5.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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 -4.7% (YoY

-8What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 3,033.8

INTEREST(9M)

At CNY 4.79 MM has Grown at 12.06%

DEBT-EQUITY RATIO (HY)

Highest at -6.12 %

OPERATING PROFIT(Q)

Lowest at CNY 43.12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.35 %

Here's what is working for ZRP Printing Group Co., Ltd.

Raw Material Cost

Fallen by -4.7% (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 ZRP Printing Group Co., Ltd.

Interest Coverage Ratio

Lowest at 3,033.8 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At CNY 4.79 MM has Grown at 12.06%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 43.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.35 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -6.12 %

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