Gstarsoft Co., Ltd. () 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

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 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 Software Products)

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

Is Gstarsoft Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Gstarsoft Co., Ltd.

22.69%

0.62

47.22%

China Shanghai Composite

16.78%

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)

16.17%

EBIT Growth (5y)

-20.04%

EBIT to Interest (avg)

36.48

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.97

Sales to Capital Employed (avg)

0.21

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

52.61%

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

1.58

EV to EBIT

34.20

EV to EBITDA

26.60

EV to Capital Employed

13.44

EV to Sales

2.56

PEG Ratio

Dividend Yield

0.27%

ROCE (Latest)

39.31%

ROE (Latest)

3.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 94.17 MM

RAW MATERIAL COST(Y)

Fallen by -4.42% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 8.39 times

NET SALES(Q)

At CNY 74.55 MM has Grown at 26.79%

-27What is not working for the Company

INTEREST(HY)

At CNY 0.23 MM has Grown at 261.36%

OPERATING PROFIT(Q)

Lowest at CNY -0.65 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -0.88 %

PRE-TAX PROFIT(Q)

Lowest at CNY 0.75 MM

NET PROFIT(Q)

Lowest at CNY 3.85 MM

EPS(Q)

Lowest at CNY 0.04

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

Operating Cash Flow

Highest at CNY 94.17 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

At CNY 74.55 MM has Grown at 26.79%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 8.39 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -4.42% (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 0.23 MM has Grown at 261.36%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 0.75 MM has Fallen at -85.89%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 3.85 MM has Fallen at -42.46%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -0.65 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -0.88 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 0.75 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 3.85 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)