Gstarsoft Co., Ltd. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

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Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Gstarsoft Co., Ltd.

Why is Gstarsoft Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1,736.30%

The company has been able to generate a Return on Capital Employed (avg) of 1,736.30% 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 11.12% and Operating profit at -26.37% 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 1,646.13% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.12% and Operating profit at -26.37% over the last 5 years

Flat results in Sep 25

INTEREST(9M) At CNY 0.11 MM has Grown at 49.89%
DEBT-EQUITY RATIO (HY) Highest at -94.83 %

With ROE of 4.80%, it has a very attractive valuation with a 2.54 Price to Book Value

Over the past year, while the stock has generated a return of 6.92%, its profits have risen by 36.9% ; the PEG ratio of the company is 1.4
At the current price, the company has a high dividend yield of 0.3

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Gstarsoft Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Gstarsoft Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Gstarsoft Co., Ltd.

0.07%

0.62

47.22%

China Shanghai Composite

16.01%

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)

11.12%

EBIT Growth (5y)

-26.37%

EBIT to Interest (avg)

36.48

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.97

Sales to Capital Employed (avg)

0.26

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

72.80%

Pledged Shares

Institutional Holding

ROCE (avg)

1,736.30%

ROE (avg)

1,646.13%

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

2.54

EV to EBIT

74.25

EV to EBITDA

64.33

EV to Capital Employed

26.58

EV to Sales

7.36

PEG Ratio

1.44

Dividend Yield

0.29%

ROCE (Latest)

35.80%

ROE (Latest)

4.80%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

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

6What is working for the Company

ROCE(HY)

Highest at 4.98%

RAW MATERIAL COST(Y)

Fallen by -1.96% (YoY

NET SALES(Q)

At CNY 85.91 MM has Grown at 21.5%

-7What is not working for the Company

INTEREST(9M)

At CNY 0.11 MM has Grown at 49.89%

DEBT-EQUITY RATIO (HY)

Highest at -94.83 %

Here's what is working for Gstarsoft Co., Ltd.

Net Sales

At CNY 85.91 MM has Grown at 21.5%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -1.96% (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 Gstarsoft Co., Ltd.

Interest

At CNY 0.11 MM has Grown at 49.89%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -94.83 %

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