A Technical Look at This Dividend Stock: Sinotrans Limited (SEHK:598)

Sinotrans Limited (SEHK:598) currently has a 10 year dividend growth rate of 9.36%. This number is calculated using the geometric average which provides the typical value of dividend growth over the specified period using the product of their values. The geometric average is defined as the nth root of the product of n numbers. Solid dividend growth may be one sign of a healthy stock. Investors may be watching different time periods to assess dividend growth rates. The stock currently has an 8 year dividend growth rate of 23.79%, a 5 year of 59.13%, and a 3 year of 12.33%.

Quant Data 

Piotroski F-Score

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Sinotrans Limited (SEHK:598) is 5. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.

M-Score (Beneish)

The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. Sinotrans Limited (SEHK:598) has an M-Score of -2.159185. The M-Score is based on 8 different variables: Days’ sales in receivables index, Gross Margin Index, Asset Quality Index, Sales Growth Index, Depreciation Index, Sales, General and Administrative expenses Index, Leverage Index and Total Accruals to Total Assets. A score higher than -1.78 is an indicator that the company might be manipulating their numbers.

Shifting gears, we can see that Sinotrans Limited (SEHK:598) has a Q.i. Value of 52. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements. The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth. The C-Score of Sinotrans Limited (SEHK:598) is 2. The score ranges on a scale of -1 to 6. If the score is -1, then there is not enough information to determine the C-Score. If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.

FCF
Free Cash Flow or FCF, may be used to gauge the true profitability of a company. FCF measures the amount of cash a company generates after accounting for capital expenditures, and it may be a useful indicator for assessing financial performance. Sinotrans Limited (SEHK:598)’s FCF growth is presently at -3.245557. This is calculated by subtracting FCF from the previous year from FCF this year, divided by FCF from last year. The company has an FCF score of -4.317105. The FCF score is an indicator that is derived by combining free cash flow stability with free cash flow growth. In general, a higher FCF score value would signal high free cash flow growth.

The current FCF quality score is 0.109281. The free quality score assists with estimating free cash flow stability. FCF quality is calculated as the 12 ltm cash flow per share over the average of the cash flow numbers. With this number, a lower ratio is typically preferred. Looking a bit further, the company has an FCF yield of -0.027458, and a 5-year average FCF yield of -0.002115. The first is simply FCF divided by enterprise value, and the second is the five year average FCF divided by the current enterprise value.

SMA Cross
Technical traders and investors may be looking at the simple moving average 50/200 cross on shares of Sinotrans Limited (SEHK:598). At the time of writing, the SMA 50/200 Cross value is 1.0591. If the value is greater than one, the 50 day moving average is above the 200 day moving average, which may signal positive stock price momentum. A value less than one would indicate that the 50 day moving average is below the 200 day, which may indicate negative share price momentum.

Range
Investors often keep track of key stock price levels when doing equity research. Two standard levels are the 52-week high and 52-week low. Shares tend to come under increased scrutiny when approaching either of the two marks. After a recent check, the current stock price divided by the 52-week high for shares of Sinotrans Limited (SEHK:598), gives us a value of 0.809.