Digital China Information Service Group Co. Ltd. (000555) 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

Digital China Information Service Group Co. Ltd.

Why is Digital China Information Service Group Co. Ltd. ?

Poor Management Efficiency with a low ROCE of 2.89%

The company has been able to generate a Return on Capital Employed (avg) of 2.89% 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 2.34% and Operating profit at -203.78% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At CNY 40.8 MM has Grown at 75.58%
OPERATING CASH FLOW(Y) Lowest at CNY -444.9 MM
RAW MATERIAL COST(Y) Grown by 25.51% (YoY)

With ROE of -9.08%, it has a risky valuation with a 2.41 Price to Book Value

Over the past year, while the stock has generated a return of 29.60%, its profits have fallen by -669%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Digital China Information Service Group Co. Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

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

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

Is Digital China Information Service Group Co. Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Digital China Information Service Group Co. Ltd.

29.6%

0.53

53.06%

China Shanghai Composite

24.7%

1.91

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.34%

EBIT Growth (5y)

-203.78%

EBIT to Interest (avg)

2.70

Debt to EBITDA (avg)

0.18

Net Debt to Equity (avg)

0.43

Sales to Capital Employed (avg)

1.38

Tax Ratio

2.75%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

2.89%

ROE (avg)

4.49%

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

2.41

EV to EBIT

-33.55

EV to EBITDA

-44.73

EV to Capital Employed

1.90

EV to Sales

1.61

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.65%

ROE (Latest)

-9.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

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

14What is working for the Company

CASH AND EQV(HY)

Highest at CNY 3,632 MM

NET SALES(Q)

Highest at CNY 4,250.08 MM

NET PROFIT(Q)

At CNY -10.6 MM has Grown at 76.74%

-12What is not working for the Company

INTEREST(HY)

At CNY 40.8 MM has Grown at 75.58%

OPERATING CASH FLOW(Y)

Lowest at CNY -444.9 MM

RAW MATERIAL COST(Y)

Grown by 25.51% (YoY

Here's what is working for Digital China Information Service Group Co. Ltd.

Net Sales

At CNY 4,250.08 MM has Grown at 64.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Sales

Highest at CNY 4,250.08 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY -10.6 MM has Grown at 76.74%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 3,632 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Digital China Information Service Group Co. Ltd.

Interest

At CNY 40.8 MM has Grown at 75.58%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -444.9 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Raw Material Cost

Grown by 25.51% (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