Dongguan Tarry Electronics Co. Ltd. () 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

Dongguan Tarry Electronics Co. Ltd.

Why is Dongguan Tarry Electronics Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 25.90% and Operating profit at 9.97% over the last 5 years

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CNY 207.61 MM
RAW MATERIAL COST(Y) Fallen by -37% (YoY)
INVENTORY TURNOVER RATIO(HY) Highest at 5.98 times

With ROE of 9.05%, it has a attractive valuation with a 2.21 Price to Book Value

Over the past year, while the stock has generated a return of 24.24%, its profits have risen by 59.5%

Market Beating performance in long term as well as near term

Along with generating 24.24% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Dongguan Tarry Electronics 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 Dongguan Tarry Electronics Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Dongguan Tarry Electronics Co. Ltd.

24.24%

3.38

51.67%

China Shanghai Composite

20.36%

1.53

13.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

25.90%

EBIT Growth (5y)

9.97%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

0.70

Tax Ratio

13.56%

Dividend Payout Ratio

32.71%

Pledged Shares

Institutional Holding

ROCE (avg)

16.89%

ROE (avg)

9.80%

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

2.21

EV to EBIT

19.09

EV to EBITDA

15.70

EV to Capital Employed

2.76

EV to Sales

2.19

PEG Ratio

Dividend Yield

ROCE (Latest)

14.44%

ROE (Latest)

9.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 207.61 MM

RAW MATERIAL COST(Y)

Fallen by -37% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.98 times

NET SALES(Q)

At CNY 801.76 MM has Grown at 22.62%

-3What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -24.62 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.32 times

Here's what is working for Dongguan Tarry Electronics Co. Ltd.

Operating Cash Flow

Highest at CNY 207.61 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)

Net Sales

At CNY 801.76 MM has Grown at 22.62%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 5.98 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -37% (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 Dongguan Tarry Electronics Co. Ltd.

Debt-Equity Ratio

Highest at -24.62 % and Grown

In each half year 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 3.32 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio