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.

0.3%

3.07

65.03%

China Shanghai Composite

8.25%

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)

22.11%

EBIT Growth (5y)

35.98%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.32

Sales to Capital Employed (avg)

0.75

Tax Ratio

3.26%

Dividend Payout Ratio

11.33%

Pledged Shares

Institutional Holding

ROCE (avg)

15.57%

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

6.15

EV to EBIT

58.53

EV to EBITDA

52.64

EV to Capital Employed

9.46

EV to Sales

9.75

PEG Ratio

52.10

Dividend Yield

0.20%

ROCE (Latest)

16.16%

ROE (Latest)

11.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

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

20What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 497.29 MM

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

RAW MATERIAL COST(Y)

Fallen by -5.82% (YoY

CASH AND EQV(HY)

Highest at CNY 4,489.57 MM

NET SALES(Q)

Highest at CNY 832.74 MM

OPERATING PROFIT(Q)

Highest at CNY 206.42 MM

OPERATING PROFIT MARGIN(Q)

Highest at 24.79 %

PRE-TAX PROFIT(Q)

Highest at CNY 210.19 MM

NET PROFIT(Q)

Highest at CNY 198.85 MM

EPS(Q)

Highest at CNY 0.85

-2What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.2 times

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

Operating Cash Flow

Highest at CNY 497.29 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

Highest at CNY 832.74 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 832.74 MM has Grown at 25.44%

over average net sales of the previous four periods of CNY 663.85 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 206.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 24.79 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 210.19 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 210.19 MM has Grown at 55.95%

over average net sales of the previous four periods of CNY 134.78 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 198.85 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.85

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 4,489.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -5.82% (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.

Inventory Turnover Ratio

Lowest at 2.2 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio