Goodwe Technologies Co., Ltd. (688390) 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

Goodwe Technologies Co., Ltd.

Why is Goodwe Technologies Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 36.98% and Operating profit at -192.02% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

INTEREST(9M) At CNY 32.91 MM has Grown at 37.5%
DEBTORS TURNOVER RATIO(HY) Lowest at 4.63 times
DEBT-EQUITY RATIO (HY) Highest at 51.45 %

With ROE of 0.69%, it has a risky valuation with a 5.03 Price to Book Value

Over the past year, while the stock has generated a return of 142.10%, its profits have fallen by -84.1%

Market Beating Performance

The stock has generated a return of 142.10% in the last 1 year, much higher than market (China Shanghai Composite) returns of 22.49%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Goodwe Technologies Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Goodwe Technologies Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Goodwe Technologies Co., Ltd.

112.18%

0.68

60.63%

China Shanghai Composite

16.67%

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)

36.98%

EBIT Growth (5y)

-192.02%

EBIT to Interest (avg)

88.47

Debt to EBITDA (avg)

0.31

Net Debt to Equity (avg)

0.35

Sales to Capital Employed (avg)

1.47

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

22.87%

ROE (avg)

17.28%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

729

Industry P/E

Price to Book Value

5.03

EV to EBIT

-68.06

EV to EBITDA

-750.94

EV to Capital Employed

3.81

EV to Sales

1.94

PEG Ratio

Dividend Yield

ROCE (Latest)

-5.60%

ROE (Latest)

0.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

16What is working for the Company

NET SALES(9M)

At CNY 6,176.62 MM has Grown at 24.95%

RAW MATERIAL COST(Y)

Fallen by -19.36% (YoY

NET PROFIT(Q)

Highest at CNY 57.85 MM

EPS(Q)

Highest at CNY 0.41

-8What is not working for the Company

INTEREST(9M)

At CNY 32.91 MM has Grown at 37.5%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.63 times

DEBT-EQUITY RATIO (HY)

Highest at 51.45 %

PRE-TAX PROFIT(Q)

Fallen at -25.95%

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

Net Sales

At CNY 6,176.62 MM has Grown at 24.95%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

Highest at CNY 57.85 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.41

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -19.36% (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 Goodwe Technologies Co., Ltd.

Interest

At CNY 32.91 MM has Grown at 37.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 4.63 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

Pre-Tax Profit

Fallen at -25.95%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at 51.45 %

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