Dareway Software Co., Ltd. (688579) 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

Dareway Software Co., Ltd.

Why is Dareway Software Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 9.60%

The company has been able to generate a Return on Capital Employed (avg) of 9.60% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 2.55% and Operating profit at -4.77% over the last 5 years

Flat results in Sep 25

DEBTORS TURNOVER RATIO(HY) Lowest at 1.43 times
OPERATING PROFIT(Q) Lowest at CNY 5.94 MM
OPERATING PROFIT MARGIN(Q) Lowest at 5.08 %

With ROE of 4.59%, it has a expensive valuation with a 3.38 Price to Book Value

Over the past year, while the stock has generated a return of 7.61%, its profits have fallen by -23.2%
At the current price, the company has a high dividend yield of 0.4

Underperformed the market in the last 1 year

The stock has generated a return of 7.61% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Software Products)

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

Is Dareway Software Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Dareway Software Co., Ltd.

-24.12%

1.20

40.58%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.78%

EBIT Growth (5y)

-31.12%

EBIT to Interest (avg)

78.84

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.17

Sales to Capital Employed (avg)

0.39

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

33.27%

Pledged Shares

Institutional Holding

ROCE (avg)

9.60%

ROE (avg)

6.50%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.74

EV to EBIT

143.08

EV to EBITDA

57.90

EV to Capital Employed

2.01

EV to Sales

4.34

PEG Ratio

Dividend Yield

0.75%

ROCE (Latest)

1.40%

ROE (Latest)

2.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -22.79% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -26.7 %

-36What is not working for the Company

ROCE(HY)

Lowest at 2.53%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.43 times

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.49 times

NET SALES(Q)

Lowest at CNY 39.53 MM

OPERATING PROFIT(Q)

Lowest at CNY -23.33 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -59.01 %

PRE-TAX PROFIT(Q)

Lowest at CNY -20.29 MM

NET PROFIT(Q)

Lowest at CNY -20.07 MM

EPS(Q)

Lowest at CNY -0.05

Here's what is working for Dareway Software Co., Ltd.

Debt-Equity Ratio

Lowest at -26.7 %

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 -22.79% (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 Dareway Software Co., Ltd.

Net Sales

At CNY 39.53 MM has Fallen at -55.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -20.29 MM has Fallen at -485.85%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -20.07 MM has Fallen at -479.48%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 1.43 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Net Sales

Lowest at CNY 39.53 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -23.33 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -59.01 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -20.29 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -20.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.05

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 2.49 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio