The Chaikin Power Gauge RatingTM for China XD Plastics Co Ltd. CXDC is very bullish due to very attractive financial metrics, very strong earnings performance and very bullish price/volume activity. The rating also reflects negative expert opinions. CXDC’s financial metrics are excellent due to a low long-term debt to equity ratio relative to its industry group and high return on equity.
Financial Metrics Rating – Very Bullish
CXDC’s financial metrics are excellent. The company does not hold much long-term debt relative to its industry group and yields a high return on shareholder’s equity. The rank is based on a low long-term debt to equity ratio relative to its industry group, low price to book value, high return on equity, low price to sales ratio and relatively low cash flow.
Earnings Performance Rating – Very Bullish
CXDC’s earnings performance has been very strong. The company experienced superior earnings growth in the past 12 months and has outperformed analysts’ earnings estimates. The rank is based on better than expected earnings in recent quarters, an upward trend in earnings this year and consistent earnings over the past 5 years.
Price/Volume Activity Rating – Very Bullish
Price and volume activity for CXDC is very bullish. CXDC is trading on higher volume than its 90 day average volume and has a rising price trend. The rank for CXDC is based on negative Chaikin money flow, a positive Chaikin price trend, a positive Chaikin price trend ROC and an increasing volume trend.
Expert Opinions – Bearish
Expert opinions about CXDC are negative. CXDC has been under performing the Chemicals industry over the past 13 weeks and analysts are lowering their EPS estimates for CXDC. The rank for CXDC is based on relative weakness of the stock versus the Chemicals industry group.
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