China Resources (Germany) Buy Hold or Sell Recommendation

LGX1 Stock  EUR 3.68  0.02  0.55%   
Assuming the 90 days trading horizon and complete risk avoidance on your part, our recommendation regarding China Resources Gas is 'Strong Sell'. Macroaxis provides China Resources buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding LGX1 positions.
  
Check out China Resources Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note, we conduct extensive research on individual companies such as China and provide practical buy, sell, or hold advice based on investors' constraints. China Resources Gas. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

Execute China Resources Buy or Sell Advice

The China recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on China Resources Gas. Macroaxis does not own or have any residual interests in China Resources Gas or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute China Resources' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell China ResourcesBuy China Resources
Strong Sell

Market Performance

InsignificantDetails

Volatility

Relatively riskyDetails

Hype Condition

StaleDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Moves indifferently to market movesDetails

Analyst Consensus

Not AvailableDetails

Reporting Quality (M-Score)

InapplicableDetails
For the selected time horizon China Resources Gas has a Mean Deviation of 2.13, Semi Deviation of 2.7, Standard Deviation of 2.87, Variance of 8.25, Downside Variance of 8.84 and Semi Variance of 7.29
We provide trade advice to complement the prevailing expert consensus on China Resources Gas. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure China Resources is not overpriced, please confirm all China Resources Gas fundamentals, including its shares owned by institutions, price to book, and the relationship between the shares owned by insiders and price to earning .

China Resources Trading Alerts and Improvement Suggestions

China Resources Gas has accumulated 295.71 M in total debt with debt to equity ratio (D/E) of 39.7, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. China Resources Gas has a current ratio of 0.72, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist China Resources until it has trouble settling it off, either with new capital or with free cash flow. So, China Resources' shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like China Resources Gas sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for China to invest in growth at high rates of return. When we think about China Resources' use of debt, we should always consider it together with cash and equity.
About 62.0% of China Resources outstanding shares are owned by corporate insiders

China Resources Returns Distribution Density

The distribution of China Resources' historical returns is an attempt to chart the uncertainty of China Resources' future price movements. The chart of the probability distribution of China Resources daily returns describes the distribution of returns around its average expected value. We use China Resources Gas price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of China Resources returns is essential to provide solid investment advice for China Resources.
Mean Return
0.20
Value At Risk
-3.7
Potential Upside
4.49
Standard Deviation
2.87
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of China Resources historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

China Resources Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to China Resources or Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that China Resources' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a China stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.19
β
Beta against Dow Jones-0.1
σ
Overall volatility
2.86
Ir
Information ratio 0.05

China Resources Volatility Alert

China Resources Gas currently demonstrates below-average downside deviation. It has Information Ratio of 0.05 and Jensen Alpha of 0.19. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure China Resources' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact China Resources' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

China Resources Fundamentals Vs Peers

Comparing China Resources' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze China Resources' direct or indirect competition across all of the common fundamentals between China Resources and the related equities. This way, we can detect undervalued stocks with similar characteristics as China Resources or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of China Resources' fundamental indicators could also be used in its relative valuation, which is a method of valuing China Resources by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare China Resources to competition
FundamentalsChina ResourcesPeer Average
Return On Equity0.16-0.31
Return On Asset0.049-0.14
Profit Margin0.07 %(1.27) %
Operating Margin0.09 %(5.51) %
Current Valuation9.83 B16.62 B
Shares Outstanding2.31 B571.82 M
Shares Owned By Insiders61.51 %10.09 %
Shares Owned By Institutions21.81 %39.21 %
Price To Earning18.26 X28.72 X
Price To Book1.75 X9.51 X
Price To Sales0.09 X11.42 X
Revenue78.18 B9.43 B
Gross Profit18.3 B27.38 B
EBITDA11.57 B3.9 B
Net Income6.4 B570.98 M
Cash And Equivalents1.32 B2.7 B
Cash Per Share0.61 X5.01 X
Total Debt295.71 M5.32 B
Debt To Equity39.70 %48.70 %
Current Ratio0.73 X2.16 X
Book Value Per Share17.23 X1.93 K
Cash Flow From Operations8.39 B971.22 M
Earnings Per Share0.33 X3.12 X
Price To Earnings To Growth1.57 X4.89 X
Number Of Employees52.78 K18.84 K
Beta0.78-0.15
Market Capitalization9.28 B19.03 B
Total Asset106.14 B29.47 B
Z Score18.68.72
Annual Yield0.04 %
Five Year Return1.48 %
Net Asset106.14 B
Last Dividend Paid1.27

China Resources Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as China . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About China Resources Buy or Sell Advice

When is the right time to buy or sell China Resources Gas? Buying financial instruments such as China Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

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Other Information on Investing in China Stock

China Resources financial ratios help investors to determine whether China Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in China with respect to the benefits of owning China Resources security.