Farsoon Technologies 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

Farsoon Technologies Co., Ltd.

Why is Farsoon Technologies Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.76% and Operating profit at -138.33% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(HY) At CNY 13.15 MM has Grown at -24.95%
ROCE(HY) Lowest at 1.95%
DEBT-EQUITY RATIO (HY) Highest at -33.22 %

With ROE of 1.99%, it has a expensive valuation with a 10.72 Price to Book Value

Over the past year, while the stock has generated a return of 127.55%, its profits have fallen by -68.1%
At the current price, the company has a high dividend yield of 0

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Farsoon Technologies Co., Ltd. should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

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

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

Is Farsoon Technologies Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Farsoon Technologies Co., Ltd.

124.86%

4.80

71.00%

China Shanghai Composite

18.97%

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)

14.58%

EBIT Growth (5y)

-33.17%

EBIT to Interest (avg)

67.77

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.41

Sales to Capital Employed (avg)

0.29

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

30.54%

Pledged Shares

Institutional Holding

ROCE (avg)

10.20%

ROE (avg)

7.33%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

603

Industry P/E

Price to Book Value

18.12

EV to EBIT

1482.59

EV to EBITDA

749.27

EV to Capital Employed

25.61

EV to Sales

52.62

PEG Ratio

22.13

Dividend Yield

0.03%

ROCE (Latest)

1.73%

ROE (Latest)

3.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

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

19What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 70.55 MM

NET SALES(HY)

At CNY 446.93 MM has Grown at 63.66%

NET PROFIT(HY)

Higher at CNY 50.8 MM

RAW MATERIAL COST(Y)

Fallen by -20.35% (YoY

-14What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -30.4 %

OPERATING PROFIT(Q)

Lowest at CNY -14.61 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -11.27 %

PRE-TAX PROFIT(Q)

Lowest at CNY -7.09 MM

NET PROFIT(Q)

Lowest at CNY -3.64 MM

EPS(Q)

Lowest at CNY -0.01

Here's what is working for Farsoon Technologies Co., Ltd.

Net Sales

At CNY 446.93 MM has Grown at 63.66%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 70.55 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)

Raw Material Cost

Fallen by -20.35% (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 Farsoon Technologies Co., Ltd.

Pre-Tax Profit

At CNY -7.09 MM has Fallen at -1,344.53%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -3.64 MM has Fallen at -358.38%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at -30.4 % 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

Operating Profit

Lowest at CNY -14.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -11.27 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -7.09 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -3.64 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)