Digiwin Software Co., Ltd. (300378) 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

Digiwin Software Co., Ltd.

Why is Digiwin Software Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.56% and Operating profit at 8.48% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

INVENTORY TURNOVER RATIO(HY) Lowest at 9.59 times
DEBTORS TURNOVER RATIO(HY) Lowest at 2.89 times
DEBT-EQUITY RATIO (HY) Highest at -13.11 %

Underperformed the market in the last 1 year

The stock has generated a return of 1.34% in the last 1 year, much lower than market (China Shanghai Composite) returns of 16.83%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Digiwin Software 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 Digiwin Software Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Digiwin Software Co., Ltd.

-19.62%

1.83

68.41%

China Shanghai Composite

3.0%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.56%

EBIT Growth (5y)

8.48%

EBIT to Interest (avg)

31.82

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

0.96

Tax Ratio

28.19%

Dividend Payout Ratio

20.49%

Pledged Shares

Institutional Holding

ROCE (avg)

12.22%

ROE (avg)

7.90%

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

4.14

EV to EBIT

46.59

EV to EBITDA

35.81

EV to Capital Employed

4.65

EV to Sales

3.80

PEG Ratio

4.99

Dividend Yield

0.34%

ROCE (Latest)

9.98%

ROE (Latest)

7.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

26What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 295.93 MM

ROCE(HY)

Highest at 12.86%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

CASH AND EQV(HY)

Highest at CNY 2,837.9 MM

PRE-TAX PROFIT(Q)

Highest at CNY 225.79 MM

NET PROFIT(Q)

Highest at CNY 194.9 MM

EPS(Q)

Highest at CNY 0.73

-13What is not working for the Company

INTEREST(HY)

At CNY 7.37 MM has Grown at 152.07%

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.31 times

DEBT-EQUITY RATIO (HY)

Highest at -1.7 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.57 times

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

Net Profit

At CNY 194.9 MM has Grown at 265.27%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 295.93 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

At CNY 225.79 MM has Grown at 184.51%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 225.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 194.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.73

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 2,837.9 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 Digiwin Software Co., Ltd.

Interest

At CNY 7.37 MM has Grown at 152.07%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 7.31 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

Debt-Equity Ratio

Highest at -1.7 %

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

Debtors Turnover Ratio

Lowest at 2.57 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Non Operating Income

Highest at CNY 0.68 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income

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