DBG Technology Co., Ltd. (300735) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

DBG Technology Co., Ltd.

Why is DBG Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 24.92% and Operating profit at -2.68% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

ROCE(HY) Lowest at 5.1%
INTEREST COVERAGE RATIO(Q) Lowest at 214.92
RAW MATERIAL COST(Y) Grown by 6.83% (YoY)

With ROE of 6.50%, it has a very expensive valuation with a 4.61 Price to Book Value

Over the past year, while the stock has generated a return of -24.57%, its profits have fallen by -30.1%
At the current price, the company has a high dividend yield of 0.9

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -24.57% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to DBG Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is DBG Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

DBG Technology Co., Ltd.

-22.71%

0.90

50.72%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.92%

EBIT Growth (5y)

-2.68%

EBIT to Interest (avg)

14.79

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

1.05

Tax Ratio

13.35%

Dividend Payout Ratio

69.60%

Pledged Shares

Institutional Holding

ROCE (avg)

14.94%

ROE (avg)

7.75%

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

4.61

EV to EBIT

74.57

EV to EBITDA

25.14

EV to Capital Employed

5.56

EV to Sales

3.11

PEG Ratio

Dividend Yield

0.86%

ROCE (Latest)

7.46%

ROE (Latest)

6.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-27What is not working for the Company

ROCE(HY)

Lowest at 5.1%

INTEREST COVERAGE RATIO(Q)

Lowest at 214.92

RAW MATERIAL COST(Y)

Grown by 6.83% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -40.22 %

NET SALES(Q)

Lowest at CNY 1,187.15 MM

OPERATING PROFIT(Q)

Lowest at CNY 10.72 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.9 %

PRE-TAX PROFIT(Q)

Lowest at CNY 30.08 MM

NET PROFIT(Q)

Lowest at CNY 34.38 MM

EPS(Q)

Lowest at CNY 0.05

Here's what is not working for DBG Technology Co., Ltd.

Net Sales

At CNY 1,187.15 MM has Fallen at -28.24%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY 30.08 MM has Fallen at -65.12%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Interest Coverage Ratio

Lowest at 214.92

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 1,187.15 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 10.72 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.9 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 30.08 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 34.38 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)

Debt-Equity Ratio

Highest at -40.22 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Raw Material Cost

Grown by 6.83% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at CNY 0.78 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income