Development Investment Construction No. 2 JSC (DC2) 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

Development Investment Construction No. 2 JSC

Why is Development Investment Construction No. 2 JSC ?

High Debt company with Weak Long Term Fundamental Strength

The company is Net-Debt Free
The company has been able to generate a Return on Capital Employed (avg) of 9.02% signifying low profitability per unit of total capital (equity and debt)

The company has declared negative results for the last 2 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at VND -95,506.13 MM
NET SALES(HY) At VND 103,382.08 MM has Grown at -20.71%
NET PROFIT(Q) At VND 744.02 MM has Fallen at -49.21%

With ROE of 3.45%, it has a very expensive valuation with a 0.00 Price to Book Value

Over the past year, while the stock has generated a return of -8.11%, its profits have fallen by -42.3%

Underperformed the market in the last 1 year

Even though the market (Vietnam VN Ho Chi Minh Index) has generated returns of 16.45% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -8.11% returns

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 Construction)

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

Is Development Investment Construction No. 2 JSC for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Development Investment Construction No. 2 JSC

-8.11%

-0.20

56.60%

Vietnam VN Ho Chi Minh Index

16.45%

0.77

21.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-9.22%

EBIT Growth (5y)

-7.40%

EBIT to Interest (avg)

1.32

Debt to EBITDA (avg)

7.61

Net Debt to Equity (avg)

0.86

Sales to Capital Employed (avg)

0.79

Tax Ratio

42.88%

Dividend Payout Ratio

43.64%

Pledged Shares

Institutional Holding

ROCE (avg)

7.44%

ROE (avg)

9.62%

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

EV to EBIT

13.28

EV to EBITDA

12.04

EV to Capital Employed

0.63

EV to Sales

0.92

PEG Ratio

Dividend Yield

ROCE (Latest)

4.73%

ROE (Latest)

3.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

No Trend

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

-32What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at VND -95,506.13 MM

NET SALES(HY)

At VND 103,382.08 MM has Grown at -20.71%

NET PROFIT(Q)

At VND 744.02 MM has Fallen at -49.21%

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.66 times

RAW MATERIAL COST(Y)

Grown by 52.42% (YoY

CASH AND EQV(HY)

Lowest at VND 39,072.38 MM

DEBT-EQUITY RATIO (HY)

Highest at 169.16 %

INTEREST(Q)

Highest at VND 3,825.11 MM

PRE-TAX PROFIT(Q)

At VND 1,582.52 MM has Fallen at -29.1%

Here's what is not working for Development Investment Construction No. 2 JSC

Net Profit

At VND 744.02 MM has Fallen at -49.21%

over average net sales of the previous four periods of VND 1,464.85 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (VND MM)

Net Sales

At VND 103,382.08 MM has Grown at -20.71%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (VND MM)

Operating Cash Flow

Lowest at VND -95,506.13 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (VND MM)

Interest

At VND 3,825.11 MM has Grown at 11.62%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (VND MM)

Inventory Turnover Ratio

Lowest at 2.66 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

Highest at VND 3,825.11 MM

in the last five periods and Increased by 11.62% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (VND MM)

Pre-Tax Profit

At VND 1,582.52 MM has Fallen at -29.1%

over average net sales of the previous four periods of VND 2,232.06 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (VND MM)

Cash and Eqv

Lowest at VND 39,072.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 169.16 %

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 52.42% (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