Beijing Watertek Information Technology Co., Ltd. (300324) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Beijing Watertek Information Technology Co., Ltd.

Why is Beijing Watertek Information Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of -8.67% and Operating profit at -11.04% over the last 5 years

Negative results in Mar 26

NET PROFIT(HY) At CNY -327.15 MM has Grown at -69.88%
INTEREST(HY) At CNY 7.15 MM has Grown at 6.1%
ROCE(HY) Lowest at -16.56%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -0.49%, its profits have fallen by -48.2%

Below par performance in long term as well as near term

Along with generating -0.49% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Beijing Watertek Information Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Beijing Watertek Information Technology Co., Ltd.

-4.72%

1.67

61.53%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.67%

EBIT Growth (5y)

-11.04%

EBIT to Interest (avg)

-12.93

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

0.81

Tax Ratio

0.65%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.76

EV to EBIT

-13.46

EV to EBITDA

-15.37

EV to Capital Employed

3.50

EV to Sales

3.25

PEG Ratio

Dividend Yield

ROCE (Latest)

-25.98%

ROE (Latest)

-18.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 138.03 MM

RAW MATERIAL COST(Y)

Fallen by -138.66% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -25.98 %

PRE-TAX PROFIT(Q)

Highest at CNY -33.84 MM

NET PROFIT(Q)

Highest at CNY -30.47 MM

EPS(Q)

Highest at CNY -0.02

-26What is not working for the Company

NET PROFIT(HY)

At CNY -327.15 MM has Grown at -69.88%

INTEREST(HY)

At CNY 7.15 MM has Grown at 6.1%

ROCE(HY)

Lowest at -16.56%

CASH AND EQV(HY)

Lowest at CNY 1,998.19 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.01 times

NET SALES(Q)

Lowest at CNY 263.24 MM

Here's what is working for Beijing Watertek Information Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 138.03 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

Highest at CNY -33.84 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY -33.84 MM has Grown at 52.02%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -30.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Lowest at -25.98 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -138.66% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Beijing Watertek Information Technology Co., Ltd.

Net Sales

At CNY 263.24 MM has Fallen at -44.48%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest

At CNY 7.15 MM has Grown at 6.1%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

Lowest at CNY 263.24 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 1,998.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 1.01 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio