ScoreWhy is GoerTek Inc. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 8.67% and Operating profit at -9.58% over the last 5 years
2
Flat results in Mar 26
- OPERATING CASH FLOW(Y) Lowest at CNY 4,878.59 MM
- INTEREST(HY) At CNY 334.72 MM has Grown at 16.13%
- NET SALES(Q) At CNY 18,658.66 MM has Fallen at -22.7%
3
With ROE of 10.50%, it has a very expensive valuation with a 1.81 Price to Book Value
- Over the past year, while the stock has generated a return of -8.42%, its profits have risen by 46.2% ; the PEG ratio of the company is 0.4
- At the current price, the company has a high dividend yield of 1.5
4
Below par performance in long term as well as near term
- Along with generating -8.42% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow 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 Electronics & Appliances)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is GoerTek Inc. for you?
High Risk, Medium Return
Absolute
Risk Adjusted
Volatility
GoerTek Inc.
-3.39%
0.60
44.40%
China Shanghai Composite
18.87%
1.36
13.97%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.67%
EBIT Growth (5y)
-9.58%
EBIT to Interest (avg)
8.07
Debt to EBITDA (avg)
0.28
Net Debt to Equity (avg)
0.01
Sales to Capital Employed (avg)
1.78
Tax Ratio
8.17%
Dividend Payout Ratio
30.70%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.36%
ROE (avg)
8.80%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
17
Industry P/E
Price to Book Value
1.81
EV to EBIT
33.86
EV to EBITDA
13.89
EV to Capital Employed
1.72
EV to Sales
0.73
PEG Ratio
0.37
Dividend Yield
1.52%
ROCE (Latest)
5.08%
ROE (Latest)
10.50%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Mildly Bullish
Mildly Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
NET PROFIT(HY)
At CNY 2,230.01 MM has Grown at 147.14%
ROCE(HY)
Highest at 11.19%
RAW MATERIAL COST(Y)
Fallen by -34.85% (YoY
CASH AND EQV(HY)
Highest at CNY 48,819.11 MM
-17What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 4,878.59 MM
INTEREST(HY)
At CNY 334.72 MM has Grown at 16.13%
NET SALES(Q)
At CNY 18,658.66 MM has Fallen at -22.7%
NET PROFIT(Q)
At CNY 508.55 MM has Fallen at -47.83%
DEBT-EQUITY RATIO
(HY)
Highest at 14.2 %
PRE-TAX PROFIT(Q)
At CNY 594.81 MM has Fallen at -38.71%
Here's what is working for GoerTek Inc.
Cash and Eqv
Highest at CNY 48,819.11 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -34.85% (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 GoerTek Inc.
Net Sales
At CNY 18,658.66 MM has Fallen at -22.7%
over average net sales of the previous four periods of CNY 24,137.54 MMMOJO Watch
Near term sales trend is extremely negative
Net Sales (CNY MM)
Interest
At CNY 334.72 MM has Grown at 16.13%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Operating Cash Flow
Lowest at CNY 4,878.59 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Net Profit
At CNY 508.55 MM has Fallen at -47.83%
over average net sales of the previous four periods of CNY 974.78 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Pre-Tax Profit
At CNY 594.81 MM has Fallen at -38.71%
over average net sales of the previous four periods of CNY 970.43 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Debt-Equity Ratio
Highest at 14.2 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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