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Cosmos Machinery Enterprises

SEHK:118
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
118
SEHK
HK$392M
Market Cap
  1. Home
  2. HK
  3. Capital Goods
Company description

Cosmos Machinery Enterprises Limited, an investment holding company, manufactures and sells machineries in Hong Kong, Mainland China, other Asia-Pacific countries, North America, and Europe. The last earnings update was 95 days ago. More info.


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118 Share Price and Events
7 Day Returns
4.6%
SEHK:118
2.4%
HK Machinery
0.8%
HK Market
1 Year Returns
-15.7%
SEHK:118
9.3%
HK Machinery
-4.4%
HK Market
118 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Cosmos Machinery Enterprises (118) 4.6% 1.1% -8.1% -15.7% 4.6% -18.8%
HK Machinery 2.4% 0.3% -10% 9.3% 60.7% 41.8%
HK Market 0.8% 1.5% -7.4% -4.4% 17.7% 1.6%
1 Year Return vs Industry and Market
  • 118 underperformed the Machinery industry which returned 9.3% over the past year.
  • 118 underperformed the Market in Hong Kong which returned -4.4% over the past year.
Price Volatility
118
Industry
5yr Volatility vs Market

Value

 Is Cosmos Machinery Enterprises undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Cosmos Machinery Enterprises. This is due to cash flow or dividend data being unavailable. The share price is HK$0.455.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Cosmos Machinery Enterprises's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Cosmos Machinery Enterprises's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:118 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in HKD HK$0.09
SEHK:118 Share Price ** SEHK (2019-07-19) in HKD HK$0.46
Hong Kong Machinery Industry PE Ratio Median Figure of 37 Publicly-Listed Machinery Companies 9.04x
Hong Kong Market PE Ratio Median Figure of 1,511 Publicly-Listed Companies 10.76x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Cosmos Machinery Enterprises.

SEHK:118 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:118 Share Price ÷ EPS (both in HKD)

= 0.46 ÷ 0.09

4.86x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cosmos Machinery Enterprises is good value based on earnings compared to the HK Machinery industry average.
  • Cosmos Machinery Enterprises is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Cosmos Machinery Enterprises's expected growth come at a high price?
Raw Data
SEHK:118 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.86x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Hong Kong Machinery Industry PEG Ratio Median Figure of 12 Publicly-Listed Machinery Companies 0.71x
Hong Kong Market PEG Ratio Median Figure of 480 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Cosmos Machinery Enterprises, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Cosmos Machinery Enterprises's assets?
Raw Data
SEHK:118 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in HKD HK$1.37
SEHK:118 Share Price * SEHK (2019-07-19) in HKD HK$0.46
Hong Kong Machinery Industry PB Ratio Median Figure of 50 Publicly-Listed Machinery Companies 0.99x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:118 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:118 Share Price ÷ Book Value per Share (both in HKD)

= 0.46 ÷ 1.37

0.33x

* Primary Listing of Cosmos Machinery Enterprises.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cosmos Machinery Enterprises is good value based on assets compared to the HK Machinery industry average.
X
Value checks
We assess Cosmos Machinery Enterprises's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Cosmos Machinery Enterprises has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Cosmos Machinery Enterprises expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Cosmos Machinery Enterprises has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
13.3%
Expected Machinery industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Cosmos Machinery Enterprises expected to grow at an attractive rate?
  • Unable to compare Cosmos Machinery Enterprises's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Cosmos Machinery Enterprises's earnings growth to the Hong Kong market average as no estimate data is available.
  • Unable to compare Cosmos Machinery Enterprises's revenue growth to the Hong Kong market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
SEHK:118 Future Growth Rates Data Sources
Data Point Source Value (per year)
Hong Kong Machinery Industry Earnings Growth Rate Market Cap Weighted Average 13.3%
Hong Kong Machinery Industry Revenue Growth Rate Market Cap Weighted Average 10.5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:118 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:118 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
SEHK:118 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-12-31 2,682 -19 74
2018-09-30 2,655 -16 81
2018-06-30 2,627 -13 88
2018-03-31 2,537 8 58
2017-12-31 2,447 29 27
2017-09-30 2,354 -3 -115
2017-06-30 2,261 -35 -257
2017-03-31 2,227 -13 -280
2016-12-31 2,192 9 -303
2016-09-30 2,215 -18 -195
2016-06-30 2,238 -44 -86
2016-03-31 2,316 -73 -68

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Cosmos Machinery Enterprises is high growth as no earnings estimate data is available.
  • Unable to determine if Cosmos Machinery Enterprises is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:118 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Cosmos Machinery Enterprises Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:118 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
SEHK:118 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-12-31 0.09
2018-09-30 0.11
2018-06-30 0.12
2018-03-31 0.08
2017-12-31 0.04
2017-09-30 -0.16
2017-06-30 -0.36
2017-03-31 -0.39
2016-12-31 -0.42
2016-09-30 -0.27
2016-06-30 -0.12
2016-03-31 -0.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Cosmos Machinery Enterprises will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine whether Cosmos Machinery Enterprises is trading at Cosmos Machinery Enterprises'san attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  2. Cosmos Machinery Enterprises's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Capital Goods companies here
  3. Cosmos Machinery Enterprises's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Cosmos Machinery Enterprises's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Cosmos Machinery Enterprises has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Cosmos Machinery Enterprises performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Cosmos Machinery Enterprises's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Cosmos Machinery Enterprises's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Cosmos Machinery Enterprises's 1-year earnings growth exceeds its 5-year average (171.4% vs -14.6%)
  • Cosmos Machinery Enterprises's earnings growth has exceeded the HK Machinery industry average in the past year (171.4% vs 18%).
Earnings and Revenue History
Cosmos Machinery Enterprises's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Cosmos Machinery Enterprises Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:118 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,682.45 74.05 405.37
2018-09-30 2,654.90 80.94 403.17
2018-06-30 2,627.34 87.83 400.97
2018-03-31 2,537.09 57.56 395.45
2017-12-31 2,446.85 27.28 389.93
2017-09-30 2,354.05 -114.68 417.78
2017-06-30 2,261.25 -256.65 445.62
2017-03-31 2,226.77 -279.90 457.84
2016-12-31 2,192.29 -303.16 470.05
2016-09-30 2,214.90 -194.58 458.56
2016-06-30 2,237.51 -86.00 447.07
2016-03-31 2,316.34 -67.80 444.13
2015-12-31 2,395.17 -49.60 441.18
2015-09-30 2,448.78 -37.63 439.85
2015-06-30 2,502.39 -25.66 438.52
2015-03-31 2,497.56 -29.48 443.13
2014-12-31 2,492.73 -33.30 447.74
2014-09-30 2,515.63 35.13 465.48
2014-06-30 2,538.53 103.57 483.21
2014-03-31 2,501.82 105.98 472.67
2013-12-31 2,465.11 108.39 462.14
2013-09-30 2,371.77 38.17 432.86
2013-06-30 2,278.43 -32.05 403.59
2013-03-31 2,200.01 -28.11 394.39
2012-12-31 2,121.59 -24.17 385.20
2012-09-30 2,135.17 -12.63 370.81

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Cosmos Machinery Enterprises has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Cosmos Machinery Enterprises used its assets less efficiently than the HK Machinery industry average last year based on Return on Assets.
  • Cosmos Machinery Enterprises has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Cosmos Machinery Enterprises's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Cosmos Machinery Enterprises has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Cosmos Machinery Enterprises's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Cosmos Machinery Enterprises's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Cosmos Machinery Enterprises is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Cosmos Machinery Enterprises's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Cosmos Machinery Enterprises's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Cosmos Machinery Enterprises Company Filings, last reported 6 months ago.

SEHK:118 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,400.29 387.47 373.63
2018-09-30 1,400.29 387.47 373.63
2018-06-30 1,431.35 406.05 415.45
2018-03-31 1,431.35 406.05 415.45
2017-12-31 1,292.14 436.93 369.02
2017-09-30 1,292.14 436.93 369.02
2017-06-30 1,189.75 374.65 330.91
2017-03-31 1,189.75 374.65 330.91
2016-12-31 1,156.91 355.89 335.60
2016-09-30 1,156.91 355.89 335.60
2016-06-30 1,496.39 325.79 362.23
2016-03-31 1,496.39 325.79 362.23
2015-12-31 1,567.82 571.80 616.58
2015-09-30 1,567.82 571.80 616.58
2015-06-30 1,677.74 498.15 599.10
2015-03-31 1,677.74 498.15 599.10
2014-12-31 1,677.62 533.39 617.62
2014-09-30 1,677.62 533.39 617.62
2014-06-30 1,672.00 510.75 435.50
2014-03-31 1,672.00 510.75 435.50
2013-12-31 1,698.53 438.13 750.41
2013-09-30 1,698.53 438.13 750.41
2013-06-30 1,595.38 329.83 293.12
2013-03-31 1,595.38 329.83 293.12
2012-12-31 1,577.90 355.77 209.21
2012-09-30 1,577.90 355.77 209.21
  • Cosmos Machinery Enterprises's level of debt (28.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (26.9% vs 28.2% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 3.4x coverage).
X
Financial health checks
We assess Cosmos Machinery Enterprises's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Cosmos Machinery Enterprises has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Cosmos Machinery Enterprises's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.4%
Current annual income from Cosmos Machinery Enterprises dividends.
If you bought HK$2,000 of Cosmos Machinery Enterprises shares you are expected to receive HK$88 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Cosmos Machinery Enterprises's pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (2.07%).
  • Cosmos Machinery Enterprises's dividend is below the markets top 25% of dividend payers in Hong Kong (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:118 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Hong Kong Machinery Industry Average Dividend Yield Market Cap Weighted Average of 26 Stocks 3.1%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:118 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
SEHK:118 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-04-16 0.020 4.331
2015-09-09 0.000 0.000
2015-08-27 0.000 0.000
2015-04-15 0.000 0.000
2015-03-30 0.000 0.000
2014-04-16 0.015 2.632
2014-03-27 0.015 2.690
2013-09-10 0.000 0.000
2013-08-28 0.000 0.000
2013-04-18 0.000 0.000
2013-03-27 0.000 0.000
2012-03-29 0.005 1.054
2011-03-29 0.015 2.288
2009-09-29 0.000 0.000
2009-09-23 0.000 0.000
2009-04-22 0.000 0.000
2008-09-23 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Cosmos Machinery Enterprises has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Cosmos Machinery Enterprises only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Cosmos Machinery Enterprises's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4.7x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Cosmos Machinery Enterprises's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Cosmos Machinery Enterprises afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Cosmos Machinery Enterprises has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Cosmos Machinery Enterprises's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Freeman Tang
COMPENSATION HK$4,445,000
AGE 41
TENURE AS CEO 6 years
CEO Bio

Mr. Yu Tang, also known as Freeman, has been the Chief Executive Officer of Cosmos Machinery Enterprises Ltd. since July 01, 2013. Mr. Tang has been an Executive Director of Cosmos Machinery Enterprises Ltd. since March 18, 2011. Mr. Tang joined Cosmos Machinery in 2006. He worked in the Commercial Banking Division of HSBC (HK) and as an associate investment advisor in Royal Bank of Canada from 2001 to 2006. Mr. Tang graduated from the University of Western Ontario (Canada) and holds a Bachelor of Arts degree in Economics and holds a Diploma in Financial Planning.

CEO Compensation
  • Freeman's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Freeman's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Cosmos Machinery Enterprises management team in years:

2
Average Tenure
63
Average Age
  • The tenure for the Cosmos Machinery Enterprises management team is about average.
Management Team

To Tang

TITLE
Chairman and Head of Policy Making & Significant Investments
COMPENSATION
HK$3M
AGE
70

Freeman Tang

TITLE
CEO & Executive Director
COMPENSATION
HK$4M
AGE
41
TENURE
6 yrs

Yiu Ming Wong

TITLE
Executive Vice Chairman
COMPENSATION
HK$11M
AGE
65

Zheqi Mei

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
41

Yuk Lun Yeung

TITLE
Consultant
AGE
47
TENURE
0.2 yrs

Wing Yan Man

TITLE
Company Secretary
TENURE
0.8 yrs

Kar Shun Yip

TITLE
Managing Director of Shenzhen Gainbase Printed Circuit Board Limited
AGE
72

Kwong Ho

TITLE
Consultant
AGE
63
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the Cosmos Machinery Enterprises board of directors in years:

10.5
Average Tenure
63.5
Average Age
  • The average tenure for the Cosmos Machinery Enterprises board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Freeman Tang

TITLE
CEO & Executive Director
COMPENSATION
HK$4M
AGE
41
TENURE
8.3 yrs

Yiu Ming Wong

TITLE
Executive Vice Chairman
COMPENSATION
HK$11M
AGE
65
TENURE
4.5 yrs

Zheqi Mei

TITLE
Executive Director
COMPENSATION
HK$2M
AGE
41
TENURE
0.9 yrs

Tak Yin Cheng

TITLE
Independent Non-Executive Director
COMPENSATION
HK$60K
AGE
80
TENURE
12.5 yrs

To Tang

TITLE
Chairman and Head of Policy Making & Significant Investments
COMPENSATION
HK$3M
AGE
70
TENURE
21.8 yrs

Shuk Fan Yeung

TITLE
Independent Non-Executive Director
COMPENSATION
HK$168K
AGE
53
TENURE
15.1 yrs

Wai Wah Kan

TITLE
Non-Executive Director
COMPENSATION
HK$60K
AGE
61
TENURE
21.2 yrs

Jinping Qu

TITLE
Non-Executive Director
AGE
62
TENURE
12.8 yrs

Wei Sem Ho

TITLE
Independent Non-Executive Director
AGE
72
TENURE
8.6 yrs

Zhi Wei Huang

TITLE
Independent Non-Executive Director
AGE
80
TENURE
6.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
X
Management checks
We assess Cosmos Machinery Enterprises's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Cosmos Machinery Enterprises has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Here’s why Cosmos Machinery Enterprises Limited’s (HKG:118) Returns On Capital Matters So Much

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Cosmos Machinery Enterprises: 0.04 = HK$58m ÷ (HK$2.7b - HK$1.3b) (Based on the trailing twelve months to December 2018.) Therefore, Cosmos Machinery Enterprises has an ROCE of 4.0%. … Do Cosmos Machinery Enterprises's Current Liabilities Skew Its ROCE? … Cosmos Machinery Enterprises has a medium level of current liabilities (boosting the ROCE somewhat), and a low ROCE.

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Is Cosmos Machinery Enterprises Limited (HKG:118) A Smart Choice For Dividend Investors?

Click the interactive chart for our full dividend analysis SEHK:118 Historical Dividend Yield, July 4th 2019 Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Cosmos Machinery Enterprises paid out 21% of its profit as dividends. Given the low payout ratio, it is hard to envision the dividend coming under threat, barring a catastrophe. Is Cosmos Machinery Enterprises's Balance Sheet Risky? As Cosmos Machinery Enterprises has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … However, it's also important to assess if earnings per share (EPS) are growing. Growing EPS can help maintain or increase the purchasing power of the dividend over the long run. Over the past five years, it looks as though Cosmos Machinery Enterprises's EPS have declined at around 9.1% a year. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend. We'd also point out that Cosmos Machinery Enterprises issued a meaningful number of new shares in the past year. Trying to grow the dividend when issuing new shares reminds us of the ancient Greek tale of Sisyphus - perpetually pushing a boulder uphill. Companies that consistently issue new shares are often suboptimal from a dividend perspective. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Ultimately, Cosmos Machinery Enterprises comes up short on our dividend analysis.

Simply Wall St -

Those Who Purchased Cosmos Machinery Enterprises (HKG:118) Shares A Year Ago Have A 40% Loss To Show For It

Investors in Cosmos Machinery Enterprises Limited (HKG:118) have tasted that bitter downside in the last year, as the share price dropped 40%. … During the unfortunate twelve months during which the Cosmos Machinery Enterprises share price fell, it actually saw its earnings per share (EPS) improve by 146%. … Its history of dividend payouts mean that Cosmos Machinery Enterprises's TSR, which was a 40% drop over the last year, was not as bad as the share price return.

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Is Cosmos Machinery Enterprises Limited's (HKG:118) P/E Ratio Really That Good?

We'll show how you can use Cosmos Machinery Enterprises Limited's (HKG:118) P/E ratio to inform your assessment of the investment opportunity. … Cosmos Machinery Enterprises has a price to earnings ratio of 5.34, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

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Before You Buy Cosmos Machinery Enterprises Limited (HKG:118), Consider Its Volatility

Volatility is considered to be a measure of risk in modern finance theory. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Why You Should Care About Cosmos Machinery Enterprises Limited’s (HKG:118) Low Return On Capital

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the amount of pre-tax profits a company can generate from the capital employed in its business.

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Volatility 101: Should Cosmos Machinery Enterprises Shares Have Dropped 26%?

Cosmos Machinery Enterprises Limited (HKG:118) shareholders should be happy to see the share price up 25% in the last quarter. … In fact, the share price is down 26%, which falls well short of the return you could get by buying an index fund. … One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price.

Simply Wall St -

Is Cosmos Machinery Enterprises Limited's (HKG:118) CEO Overpaid Relative To Its Peers?

Freeman Tang has been the CEO of Cosmos Machinery Enterprises Limited (HKG:118) since 2013. … This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Freeman Tang's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Before You Buy Cosmos Machinery Enterprises Limited (HKG:118), Consider Its Volatility

Volatility is considered to be a measure of risk in modern finance theory. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … While we should keep in mind that Warren Buffett has cautioned that 'Volatility is far from synonymous with risk', beta is still a useful factor to consider.

Simply Wall St -

How Financially Strong Is Cosmos Machinery Enterprises Limited (HKG:118)?

While small-cap stocks, such as Cosmos Machinery Enterprises Limited (HKG:118) with its market cap of HK$345m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … So, understanding the company's financial health becomes. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

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Company Info

Description

Cosmos Machinery Enterprises Limited, an investment holding company, manufactures and sells machineries in Hong Kong, Mainland China, other Asia-Pacific countries, North America, and Europe. The company operates in four segments: Trading of Industrial Consumables, Manufacturing of Plastic Processing Products, Manufacturing of Machinery, and Processing and Trading of Printed Circuit Boards. Its machinery products include two-platen injection moulding, servo-driven injection moulding, all-electric high precision injection moulding, special purpose injection moulding, multi-material injection moulding, rubber injection, extrusion line, hydraulic press, CNC turret punching, CNC brake press, and CNC shearing machines. The company’s plastic processing products comprise household electrical appliances, communication and electronic consumer products, aseptic food packaging products and tableware, blow molded plastic containers, biodegradable plastic kitchenware, and plastic mannequins, as well as magnifiers, microscopes, and binoculars. It also trades in spring steel wires and special alloy materials, screws and fasteners, abrasive products, electric and pneumatic tools, production facility accessories, hydraulic motors and pumps, stepping motors, servo motors, cooling fans, 3 phase induction motors, frequency inverters, vision inspection and illumination systems, hydraulic and power presses, CNC machines and machining centers, and CNC wire-cut EDM and EDM machines. In addition, the company provides printed circuit boards, CNC electrical discharged machines, CNC brass and molybdenum wire-cut machines, EDM, and drill EDM machines. Further, it offers various services comprising consultation and implementation of ERP and CRM systems, system integration, information technology training, maintenance of small computers, development of software and Websites, and information technology contract services. The company was founded in 1958 and is based in Cheung Sha Wan, Hong Kong.

Details
Name: Cosmos Machinery Enterprises Limited
118
Exchange: SEHK
Founded: 1958
HK$392,178,464
861,930,692
Website: http://www.cosmel.com
Address: Cosmos Machinery Enterprises Limited
Billion Plaza 2,
10th Floor,
Cheung Sha Wan,
Kowloon, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 118 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 02. Jan 1992
Number of employees
Current staff
Staff numbers
3,320
Cosmos Machinery Enterprises employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 12:41
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2017/03/30
Last earnings filing: 2019/04/16
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.