GoerTek Inc. (002241) 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

GoerTek Inc.

Why is GoerTek Inc. ?

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

Negative 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%

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 -6.96%, 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

Below par performance in long term as well as near term

Along with generating -6.96% 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 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 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, High Return

Absolute

Risk Adjusted

Volatility

GoerTek Inc.

-21.39%

0.67

44.62%

China Shanghai Composite

3.56%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.67%

EBIT Growth (5y)

-9.58%

EBIT to Interest (avg)

6.06

Debt to EBITDA (avg)

0.43

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

1.78

Tax Ratio

3.35%

Dividend Payout Ratio

30.70%

Pledged Shares

Institutional Holding

ROCE (avg)

6.45%

ROE (avg)

8.80%

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

2.12

EV to EBIT

39.32

EV to EBITDA

16.13

EV to Capital Employed

2.00

EV to Sales

0.85

PEG Ratio

0.44

Dividend Yield

1.29%

ROCE (Latest)

5.08%

ROE (Latest)

10.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

7What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.49% (YoY

NET PROFIT(9M)

Higher at CNY 2,935.5 MM

CASH AND EQV(HY)

Highest at CNY 48,303.06 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.45 %

-19What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 4,885.39 MM

NET SALES(Q)

At CNY 21,387.63 MM has Fallen at -13.5%

DEBT-EQUITY RATIO (HY)

Highest at 16.09 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.48 times

INTEREST(Q)

Highest at CNY 295.13 MM

NET PROFIT(Q)

At CNY 705.49 MM has Fallen at -29.09%

Here's what is working for GoerTek Inc.

Operating Profit Margin

Highest at 9.45 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at CNY 48,303.06 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -9.49% (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.

Operating Cash Flow

Lowest at CNY 4,885.39 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

At CNY 21,387.63 MM has Fallen at -13.5%

over average net sales of the previous four periods of CNY 24,725.97 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Interest

At CNY 295.13 MM has Grown at 91.04%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 295.13 MM

in the last five periods and Increased by 91.04% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 705.49 MM has Fallen at -29.09%

over average net sales of the previous four periods of CNY 994.87 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 16.09 %

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

Inventory Turnover Ratio

Lowest at 5.48 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio