Fact based stock research
China Steel Chemicaloration (TSEC:1723)

TW0001723005

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

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China Steel Chemicaloration stock research in summary

cscc.com.tw

ANALYSIS: With an Obermatt Combined Rank of 21 (worse than 79% compared with investment alternatives), China Steel Chemicaloration (Specialty Chemicals, Taiwan) shares have lower financial characteristics compared with similar stocks. Shares of China Steel Chemicaloration are low in value (priced high) with a consolidated Value Rank of 9 (worse than 91% of alternatives) and show below-average growth (Growth Rank of 33) but are safely financed (Safety Rank of 57), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 21, is a sell recommendation based on China Steel Chemicaloration's financial characteristics. As the company China Steel Chemicaloration's critical financial metrics exhibit below-average performance, such as low value (Obermatt Value Rank of 9) and low growth (Obermatt Growth Rank of 33), it is a somewhat questionable stock investment, where the risk of paying too much for the shares is significant, unless the company has an exceptionally bright future. In this case, good financing practices (Obermatt Safety Rank of 57) are a positive sign, because it may allow the company to weather challenging times until the hoped-for cash flows materialize. This may be true for high-tech or biotechnology companies with enough cash to sustain prolonged business development. If they own properties that only provide cash flows in the future, the stock may look excessively expensive and unattractive today. In such cases, the Obermatt Method has limited value, as it is based on facts we can observe today. If the facts lie all in the future, stock investing becomes guesswork, and this should only be a driver in a limited number of investments that account for a small fraction of a safe portfolio. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	9
Growth Rank	33
Safety Rank	57
Combined Rank	21

Country	Taiwan
Industry	Specialty Chemicals
Index	FTSE Taiwan
Size class	Small

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: China Steel Chemicaloration

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	39	17	23	9
GROWTH
GROWTH	64	65	31	33
SAFETY
SAFETY	47	18	62	57
SENTIMENT
SENTIMENT	n/a	30	82	^new
360° VIEW
360° VIEW	n/a	11	51	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better China Steel Chemicaloration is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	39	17	23	9
GROWTH
GROWTH	64	65	31	33
SAFETY
SAFETY	47	18	62	57
COMBINED
COMBINED	48	14	34	21

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of China Steel Chemicaloration the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 9 (worse than 91% compared with alternatives), China Steel Chemicaloration shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for China Steel Chemicaloration. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 61% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 1 which means that the stock price compared with what market professionals expect for future profits is higher than 99% of comparable companies, indicating a low value concerning China Steel Chemicaloration's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 22 which means that the stock price compared with what market professionals expect for future profit levels is higher than 78% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 5 is also low. Compared with invested capital, the stock price is higher than for 95% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 9, is a sell recommendation based on China Steel Chemicaloration's stock price compared with the company's operational size and dividend yields. Should dividend investors pick China Steel Chemicaloration? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose China Steel Chemicaloration only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	21	7	5	1
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	50	16	31	22
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	24	7	5	5
DIVIDEND YIELD
DIVIDEND YIELD	78	92	84	61
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	39	17	23	9

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of China Steel Chemicaloration; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 33 (better than 33% compared with alternatives), China Steel Chemicaloration shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for China Steel Chemicaloration. While Sales Growth ranks at 73, professionals currently expect the company to grow more than 73% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 35, which means that, currently, professionals expect the company to grow its profits less than 65% of its competitors, and Capital Growth has a low rank of 24. Historic stock returns were also below average with a current Stock Returns rank of 47 which means that the stock returns have recently been below 53% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 33, is a hold recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	70	18	12	73
PROFIT GROWTH
PROFIT GROWTH	51	73	40	35
CAPITAL GROWTH
CAPITAL GROWTH	n/a	67	45	24
STOCK RETURNS
STOCK RETURNS	42	53	65	47
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	64	65	31	33

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of China Steel Chemicaloration.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 57 (better than 57% compared with alternatives), the company China Steel Chemicaloration has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of China Steel Chemicaloration is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for China Steel Chemicaloration. Leverage is at a rank of 68, meaning the company has a below-average debt-to-equity ratio. It has less debt than 68% of its competitors. Liquidity is also good at a rank of 83, meaning the company generates more profit to service its debt than 83% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 17, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 83% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 57 (better than 57% compared with alternatives), China Steel Chemicaloration has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for China Steel Chemicaloration. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with China Steel Chemicaloration and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	48	34	72	68
REFINANCING
REFINANCING	44	5	9	17
LIQUIDITY
LIQUIDITY	60	52	84	83
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	47	18	62	57

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of China Steel Chemicaloration and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	43	44	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	50	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	24	89	^new
MARKET PULSE
MARKET PULSE	n/a	38	82	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	30	82	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for China Steel Chemicaloration.
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