Espressif Systems (Shanghai) Co., Ltd. (688018) 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

Espressif Systems (Shanghai) Co., Ltd.

Why is Espressif Systems (Shanghai) Co., Ltd. ?

The company has declared Positive results for the last 6 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 456.67 MM
NET SALES(HY) At CNY 1,354.4 MM has Grown at 26.25%
DEBT-EQUITY RATIO (HY) Lowest at -56.87 %

With ROE of 18.48%, it has a very expensive valuation with a 12.70 Price to Book Value

Over the past year, while the stock has generated a return of 3.86%, its profits have risen by 100.4% ; the PEG ratio of the company is 1.6
At the current price, the company has a high dividend yield of 0.2

Underperformed the market in the last 1 year

The stock has generated a return of 3.86% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Espressif Systems (Shanghai) Co., Ltd. should be less than 10%
Overall Portfolio exposure to Other Electrical Equipment should be less than 30%

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

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

Is Espressif Systems (Shanghai) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Espressif Systems (Shanghai) Co., Ltd.

-9.51%

3.07

65.03%

China Shanghai Composite

13.33%

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)

25.69%

EBIT Growth (5y)

31.48%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

0.79

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

13.87%

Pledged Shares

Institutional Holding

ROCE (avg)

14.97%

ROE (avg)

9.74%

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

12.70

EV to EBIT

86.18

EV to EBITDA

75.16

EV to Capital Employed

17.28

EV to Sales

12.98

PEG Ratio

1.59

Dividend Yield

0.22%

ROCE (Latest)

20.05%

ROE (Latest)

18.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 456.67 MM

NET SALES(HY)

At CNY 1,354.4 MM has Grown at 26.25%

DEBT-EQUITY RATIO (HY)

Lowest at -56.87 %

DEBTORS TURNOVER RATIO(HY)

Highest at 6.45 times

RAW MATERIAL COST(Y)

Fallen by -18.25% (YoY

NET PROFIT(9M)

Higher at CNY 376.76 MM

CASH AND EQV(HY)

Highest at CNY 3,719.19 MM

-8What is not working for the Company

INTEREST(HY)

At CNY 3.55 MM has Grown at 822.08%

Here's what is working for Espressif Systems (Shanghai) Co., Ltd.

Net Sales

At CNY 1,354.4 MM has Grown at 26.25%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debt-Equity Ratio

Lowest at -56.87 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 6.45 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Profit

At CNY 376.76 MM has Grown at 50.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 456.67 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Cash and Eqv

Highest at CNY 3,719.19 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Net Profit

Higher at CNY 376.76 MM

than preceding 12 month period ended Sep 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (CNY MM)

Raw Material Cost

Fallen by -18.25% (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 Espressif Systems (Shanghai) Co., Ltd.

Interest

At CNY 3.55 MM has Grown at 822.08%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)