EmbedWay Technologies (Shanghai) Corp. (603496) 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

EmbedWay Technologies (Shanghai) Corp.

Why is EmbedWay Technologies (Shanghai) Corp. ?

Poor Management Efficiency with a low ROCE of 2.91%

The company has been able to generate a Return on Capital Employed (avg) of 2.91% 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 14.41% and Operating profit at 0.58% over the last 5 years

OPERATING CASH FLOW(Y) Highest at CNY 125.63 MM
NET SALES(Q) At CNY 307.94 MM has Grown at 30.33%
PRE-TAX PROFIT(Q) At CNY -5.01 MM has Grown at 90.95%

With ROE of -1.85%, it has a risky valuation with a 7.52 Price to Book Value

Over the past year, while the stock has generated a return of -28.61%, its profits have fallen by -117.2%
At the current price, the company has a high dividend yield of 0.1

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -28.61% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to EmbedWay Technologies (Shanghai) Corp. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

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

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

Is EmbedWay Technologies (Shanghai) Corp. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

EmbedWay Technologies (Shanghai) Corp.

7.84%

0.54

47.84%

China Shanghai Composite

23.91%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.96%

EBIT Growth (5y)

-6.25%

EBIT to Interest (avg)

4.47

Debt to EBITDA (avg)

0.33

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.59

Tax Ratio

32.68%

Dividend Payout Ratio

22.91%

Pledged Shares

Institutional Holding

ROCE (avg)

2.91%

ROE (avg)

4.38%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

153

Industry P/E

Price to Book Value

5.22

EV to EBIT

466.61

EV to EBITDA

174.84

EV to Capital Employed

5.75

EV to Sales

6.49

PEG Ratio

0.44

Dividend Yield

0.02%

ROCE (Latest)

1.23%

ROE (Latest)

3.42%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

22What is working for the Company

PRE-TAX PROFIT(Q)

At CNY 9.59 MM has Grown at 219.98%

OPERATING CASH FLOW(Y)

Highest at CNY 167.9 MM

NET SALES(Q)

At CNY 178.39 MM has Grown at 42.89%

NET PROFIT(Q)

At CNY 5.48 MM has Grown at 169.36%

-3What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 10.7% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -5.77 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.23 %

Here's what is working for EmbedWay Technologies (Shanghai) Corp.

Pre-Tax Profit

At CNY 9.59 MM has Grown at 219.98%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 178.39 MM has Grown at 42.89%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 5.48 MM has Grown at 169.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 167.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for EmbedWay Technologies (Shanghai) Corp.

Operating Profit

Lowest at CNY -5.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.23 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 10.7% (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

Non Operating Income

Highest at CNY 1.65 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income