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 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 Computers - Software & Consulting)

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

Is Digiwin Software Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Digiwin Software Co., Ltd.

-44.5%

1.83

68.41%

China Shanghai Composite

8.25%

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

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 279.56 MM

RAW MATERIAL COST(Y)

Fallen by 0.69% (YoY

CASH AND EQV(HY)

Highest at CNY 3,249.33 MM

PRE-TAX PROFIT(Q)

At CNY -4.48 MM has Grown at 59.39%

-18What is not working for the Company

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 %

INTEREST(Q)

Highest at CNY 6.95 MM

OPERATING PROFIT(Q)

Lowest at CNY -13.34 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.06 %

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

Operating Cash Flow

Highest at CNY 279.56 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 -4.48 MM has Grown at 59.39%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 3,249.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.69% (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 Digiwin Software Co., Ltd.

Interest

At CNY 6.95 MM has Grown at 176.56%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 9.59 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

Debtors Turnover Ratio

Lowest at 2.89 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

Interest

Highest at CNY 6.95 MM

in the last five periods and Increased by 176.56% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -13.34 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.06 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -13.11 %

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