Suzhou Shijing Environmental Technology Co Ltd

Suzhou Shijing Environmental Technology Co Ltd has a debt-to-equity ratio of 1.7, indicating a relatively high level of leverage compared to its equity base. The company's liquidity is assessed as medium, with a current ratio of 1.25, suggesting it has sufficient short-term assets to cover its short-term liabilities, but not with a large margin of safety. The company's operating cash flow is negative at -352.02 million CNY, and capital expenditures are also negative at -429.88 million CNY, indicating significant cash outflows for operations and investments.

The company's profitability is modest, with a return on equity (ROE) of 2.55% and a return on assets (ROA) of 0.52%. These figures are below the typical thresholds for strong performance in the environmental services and equipment industry, where ROE and ROA are key indicators of operational efficiency and capital utilization. The company's net income of 49.57 million CNY is relatively low compared to its total assets of 9.47 billion CNY, further highlighting the need for improved profitability.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification in the provided data. This lack of diversification may expose the company to higher operational and market risks, particularly in the event of regional economic downturns or regulatory changes affecting the environmental services sector.

Looking ahead, the company's growth trajectory is uncertain. The most recent actual earnings per share (EPS) were -6.67 CNY, while the mean analyst EPS estimate is 0.76 CNY, indicating a significant gap between current performance and expectations. The company has one "buy" recommendation from analysts, with no "strong buy" or "sell" ratings, suggesting a cautious outlook. The absence of strong buy ratings may reflect concerns about the company's ability to meet or exceed earnings expectations in the near term.

The company's risk profile includes a medium liquidity risk and a low dilution risk. The key flag of negative net cash after subtracting total debt highlights the company's reliance on external financing to fund operations and capital expenditures. The low dilution risk suggests that the company is not currently issuing a large number of new shares, which could otherwise dilute existing shareholders' equity.

Recent events, including the company's financial performance and analyst ratings, indicate a mixed outlook. The company's negative operating cash flow and capital expenditures suggest ongoing investment in its operations, but the negative EPS and low analyst confidence may signal challenges in achieving sustainable growth. The company's ability to improve its cash flow and profitability will be critical in determining its long-term viability in the environmental services and equipment industry.

Revenue grew 156.9% year-over-year, demonstrating significant top-line expansion momentum despite recent volatility in profitability.

A single analyst recommendation of buy suggests limited but positive professional sentiment regarding the stock's potential.

High credit risk flags indicate significant concerns regarding the company's ability to meet its financial obligations.

Debt-to-equity ratio of 1.7 is in the bottom quartile, signaling excessive leverage compared to the 0.43 cohort median.

Cash conversion ratio of -7.1 is in the bottom quartile, far worse than the 0.95 cohort median.

Revenue ¥616.2M, −69,8% YoY; Operating income −36,5% YoY.

• ▍Revenue ¥616.2M, −69,8% YoY
• ▍Operating income −36,5% YoY
• ▍Net income −58,8% YoY
• ▍Free cash flow +17,1% YoY
• ▍Net margin -218.4%

Revenue ¥3.44B, +140,2% YoY; Operating income +164,8% YoY.

• ▍Revenue ¥3.44B, +140,2% YoY
• ▍Operating income +164,8% YoY
• ▍Net income +123,3% YoY
• ▍Free cash flow −932,7% YoY
• ▍Net margin 6.3%

Revenue ¥1.43B, +80,4% YoY; Operating income +56,8% YoY.

• ▍Revenue ¥1.43B, +80,4% YoY
• ▍Operating income +56,8% YoY
• ▍Net income +66,7% YoY
• ▍Free cash flow −266,7% YoY
• ▍Net margin 6.8%