Elcom Technology Communications Corp. (ELC) 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

Petrolimex Information Technology & Telecommunication JSC

Elcom Technology Communications Corp.

CMC Corp. (Vietnam)

Information & Networking Technology JSC

Sara JSC

Why is Elcom Technology Communications Corp. ?

Poor Management Efficiency with a low ROE of 6.34%

The company has been able to generate a Return on Equity (avg) of 6.34% signifying low profitability per unit of shareholders funds

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 9.94

ROCE(HY) Highest at 11.82%
CASH AND EQV(HY) Highest at VND 572,624.55 MM
NET SALES(Q) Highest at VND 427,600.2 MM

With ROE of 8.96%, it has a fair valuation with a 1.73 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -16.38%, its profits have risen by 22.2% ; the PEG ratio of the company is 10.7

Underperformed the market in the last 1 year

Even though the market (Vietnam VN Ho Chi Minh Index) has generated returns of 43.59% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -16.38% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Elcom Technology Communications Corp. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Elcom Technology Communications Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Elcom Technology Communications Corp.

-16.38%

-0.28

32.10%

Vietnam VN Ho Chi Minh Index

43.59%

1.93

22.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.47%

EBIT Growth (5y)

22.85%

EBIT to Interest (avg)

9.94

Debt to EBITDA (avg)

Net Debt to Equity (avg)

0.04

Sales to Capital Employed (avg)

0.83

Tax Ratio

13.64%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.96%

ROE (avg)

6.34%

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

1.73

EV to EBIT

19.76

EV to EBITDA

16.21

EV to Capital Employed

1.74

EV to Sales

2.34

PEG Ratio

10.65

Dividend Yield

0.40%

ROCE (Latest)

8.81%

ROE (Latest)

8.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bullish

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

24What is working for the Company

ROCE(HY)

Highest at 11.82%

CASH AND EQV(HY)

Highest at VND 572,624.55 MM

NET SALES(Q)

Highest at VND 427,600.2 MM

PRE-TAX PROFIT(Q)

At VND 47,746.82 MM has Grown at 54.14%

NET PROFIT(Q)

At VND 39,005.43 MM has Grown at 49.33%

-18What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at VND -190,861.43 MM

RAW MATERIAL COST(Y)

Grown by 33.66% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 7.29 %

INTEREST(Q)

Highest at VND 3,868.04 MM

Here's what is working for Elcom Technology Communications Corp.

Net Sales

At VND 427,600.2 MM has Grown at 94.46%

over average net sales of the previous four periods of VND 219,891.44 MM

MOJO Watch

Near term sales trend is extremely positive

Net Sales (VND MM)

Net Sales

Highest at VND 427,600.2 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (VND MM)

Pre-Tax Profit

At VND 47,746.82 MM has Grown at 54.14%

over average net sales of the previous four periods of VND 30,976.27 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (VND MM)

Net Profit

At VND 39,005.43 MM has Grown at 49.33%

over average net sales of the previous four periods of VND 26,119.56 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (VND MM)

Cash and Eqv

Highest at VND 572,624.55 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 Elcom Technology Communications Corp.

Interest

At VND 3,868.04 MM has Grown at 15.04%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (VND MM)

Operating Cash Flow

Lowest at VND -190,861.43 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (VND MM)

Interest

Highest at VND 3,868.04 MM

in the last five periods and Increased by 15.04% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (VND MM)

Debt-Equity Ratio

Highest at 7.29 %

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 33.66% (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