GCL System Integration Technology Co., Ltd. (002506) 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

GCL System Integration Technology Co., Ltd.

Why is GCL System Integration Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.07%

The company has been able to generate a Return on Capital Employed (avg) of 0.07% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 20.76% and Operating profit at -350.29% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 1.86% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 20.76% and Operating profit at -350.29% over the last 5 years

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

ROCE(HY) Lowest at -26.78%
DEBT-EQUITY RATIO (HY) Highest at 275.32 %
DEBTORS TURNOVER RATIO(HY) Lowest at 4.88 times

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is GCL System Integration Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

GCL System Integration Technology Co., Ltd.

114.06%

2.54

58.15%

China Shanghai Composite

16.67%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

20.76%

EBIT Growth (5y)

-350.29%

EBIT to Interest (avg)

-2.47

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.57

Sales to Capital Employed (avg)

1.64

Tax Ratio

8.04%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.07%

ROE (avg)

1.86%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

7.40

EV to EBIT

-66.72

EV to EBITDA

49.21

EV to Capital Employed

3.51

EV to Sales

1.14

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.26%

ROE (Latest)

-15.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-26What is not working for the Company

ROCE(HY)

Lowest at -26.78%

DEBT-EQUITY RATIO (HY)

Highest at 275.32 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.88 times

RAW MATERIAL COST(Y)

Grown by 84.43% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -173.68 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -4.34 %

PRE-TAX PROFIT(Q)

Lowest at CNY -231 MM

NET PROFIT(Q)

Lowest at CNY -228.26 MM

EPS(Q)

Lowest at CNY -0.04

Here's what is not working for GCL System Integration Technology Co., Ltd.

Pre-Tax Profit

At CNY -231 MM has Fallen at -1,273.5%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -228.26 MM has Fallen at -691.81%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 275.32 % 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

Debtors Turnover Ratio

Lowest at 4.88 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit

Lowest at CNY -173.68 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -4.34 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -231 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 -228.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.04

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 84.43% (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