Hangzhou IECHO Science & 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hangzhou IECHO Science & Technology Co., Ltd.

Why is Hangzhou IECHO Science & Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 24.22%

The company has been able to generate a Return on Capital Employed (avg) of 24.22% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 12.86% and Operating profit at -11.18% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 10.44% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 12.86% and Operating profit at -11.18% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

INTEREST(HY) At CNY 0.52 MM has Grown at 139.16%
ROCE(HY) Lowest at 4.86%
RAW MATERIAL COST(Y) Grown by 10.94% (YoY)

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 3.23% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -11.92% returns

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 Industrial Manufacturing)

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

Is Hangzhou IECHO Science & Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hangzhou IECHO Science & Technology Co., Ltd.

-7.88%

-0.07

38.02%

China Shanghai Composite

0.9%

0.22

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.86%

EBIT Growth (5y)

-11.18%

EBIT to Interest (avg)

40.13

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

0.67

Tax Ratio

10.76%

Dividend Payout Ratio

44.02%

Pledged Shares

Institutional Holding

ROCE (avg)

18.08%

ROE (avg)

10.44%

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

2.63

EV to EBIT

33.60

EV to EBITDA

27.62

EV to Capital Employed

5.46

EV to Sales

2.95

PEG Ratio

Dividend Yield

ROCE (Latest)

16.24%

ROE (Latest)

6.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Mildly 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

3What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 235.29%

CASH AND EQV(HY)

Highest at CNY 1,172.27 MM

NET SALES(Q)

Highest at CNY 129.63 MM

-28What is not working for the Company

INTEREST(HY)

At CNY 0.52 MM has Grown at 139.16%

ROCE(HY)

Lowest at 4.86%

RAW MATERIAL COST(Y)

Grown by 10.94% (YoY

PRE-TAX PROFIT(Q)

Lowest at CNY 4.27 MM

NET PROFIT(Q)

Lowest at CNY 1.4 MM

EPS(Q)

Lowest at CNY 0.02

Here's what is working for Hangzhou IECHO Science & Technology Co., Ltd.

Net Sales

Highest at CNY 129.63 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 1,172.27 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 235.29%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Hangzhou IECHO Science & Technology Co., Ltd.

Interest

At CNY 0.52 MM has Grown at 139.16%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY 4.27 MM has Fallen at -75.44%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1.4 MM has Fallen at -91.12%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Pre-Tax Profit

Lowest at CNY 4.27 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 1.4 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 10.94% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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