Guangzhou Echom Sci. & Tech. Co., Ltd. (002420) 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

Guangzhou Echom Sci. & Tech. Co., Ltd.

Why is Guangzhou Echom Sci. & Tech. Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.27%

The company has been able to generate a Return on Capital Employed (avg) of 3.27% 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 -2.11% and Operating profit at 77.15% 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 7.67% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -2.11% and Operating profit at 77.15% over the last 5 years

OPERATING CASH FLOW(Y) Lowest at CNY -66.96 MM
CASH AND EQV(HY) Lowest at CNY 162.57 MM
DEBT-EQUITY RATIO (HY) Highest at 120.05 %

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 Miscellaneous)

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

Is Guangzhou Echom Sci. & Tech. Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Guangzhou Echom Sci. & Tech. Co., Ltd.

13.92%

1.72

40.79%

China Shanghai Composite

14.77%

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)

-2.11%

EBIT Growth (5y)

77.15%

EBIT to Interest (avg)

0.27

Debt to EBITDA (avg)

4.06

Net Debt to Equity (avg)

1.16

Sales to Capital Employed (avg)

1.82

Tax Ratio

7.08%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.27%

ROE (avg)

7.67%

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

4.67

EV to EBIT

106.63

EV to EBITDA

33.53

EV to Capital Employed

2.29

EV to Sales

1.39

PEG Ratio

0.45

Dividend Yield

ROCE (Latest)

2.15%

ROE (Latest)

7.57%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

19What is working for the Company

NET SALES(HY)

At CNY 1,550.47 MM has Grown at 45.58%

NET PROFIT(HY)

Higher at CNY 25.98 MM

ROCE(HY)

Highest at 11.38%

RAW MATERIAL COST(Y)

Fallen by -15.71% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 8.83%

PRE-TAX PROFIT(Q)

At CNY 31.97 MM has Grown at 60.81%

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -66.96 MM

CASH AND EQV(HY)

Lowest at CNY 162.57 MM

DEBT-EQUITY RATIO (HY)

Highest at 120.05 %

Here's what is working for Guangzhou Echom Sci. & Tech. Co., Ltd.

Net Sales

At CNY 1,550.47 MM has Grown at 45.58%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 25.98 MM has Grown at 125.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Profit

Higher at CNY 25.98 MM

than preceding 12 month period ended Mar 2025

MOJO Watch

In the half year the company has already crossed Net Profit of the previous twelve months

Net Profit (CNY MM)

Pre-Tax Profit

At CNY 31.97 MM has Grown at 60.81%

over average net sales of the previous four periods of CNY 19.88 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Inventory Turnover Ratio

Highest at 8.83%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -15.71% (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 Guangzhou Echom Sci. & Tech. Co., Ltd.

Operating Cash Flow

Lowest at CNY -66.96 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)

Cash and Eqv

Lowest at CNY 162.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 120.05 %

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