Guangdong Deerma Technology 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guangdong Deerma Technology Co., Ltd.

Why is Guangdong Deerma Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.07%

The company has been able to generate a Return on Capital Employed (avg) of 3.07% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 18.40% and Operating profit at -6.66% over the last 5 years

OPERATING PROFIT(Q) Lowest at CNY 20.74 MM
OPERATING PROFIT MARGIN(Q) Lowest at 2.68 %
PRE-TAX PROFIT(Q) Lowest at CNY 27.58 MM

With ROE of 4.89%, it has a very attractive valuation with a 0.30 Price to Book Value

Over the past year, while the stock has generated a return of -9.33%, its profits have risen by 37% ; the PEG ratio of the company is 0.2
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 -9.33% 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 hold?

Overall Portfolio exposure to Guangdong Deerma Technology 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 Guangdong Deerma Technology Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Guangdong Deerma Technology Co., Ltd.

-10.01%

0.14

34.78%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.40%

EBIT Growth (5y)

-6.66%

EBIT to Interest (avg)

60.13

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

330.01

Tax Ratio

10.30%

Dividend Payout Ratio

48.54%

Pledged Shares

Institutional Holding

ROCE (avg)

3.07%

ROE (avg)

4.23%

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

0.30

EV to EBIT

0.61

EV to EBITDA

0.26

EV to Capital Employed

0.03

EV to Sales

0.02

PEG Ratio

0.16

Dividend Yield

1.47%

ROCE (Latest)

4.96%

ROE (Latest)

4.89%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

No Trend

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

11What is working for the Company

NET SALES(HY)

At CNY 1,896.59 MM has Grown at 19.04%

NET PROFIT(HY)

At CNY 61.68 MM has Grown at 87.63%

ROCE(HY)

Highest at 4.99%

RAW MATERIAL COST(Y)

Fallen by -5.26% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 5.14%

DEBTORS TURNOVER RATIO(HY)

Highest at 8.81%

-4What is not working for the Company

OPERATING PROFIT(Q)

Lowest at CNY 20.74 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.68 %

PRE-TAX PROFIT(Q)

Lowest at CNY 27.58 MM

NET PROFIT(Q)

Lowest at CNY 22.85 MM

Here's what is working for Guangdong Deerma Technology Co., Ltd.

Net Sales

At CNY 1,896.59 MM has Grown at 19.04%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 5.14%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 8.81%

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 -5.26% (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 Guangdong Deerma Technology Co., Ltd.

Operating Profit

Lowest at CNY 20.74 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.68 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 27.58 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 22.85 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)