Iflytek Co., Ltd. (002230) 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

Iflytek Co., Ltd.

Why is Iflytek Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.16%

The company has been able to generate a Return on Capital Employed (avg) of 1.16% 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 19.58% and Operating profit at -267.83% 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 5.32% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 19.58% and Operating profit at -267.83% over the last 5 years

Flat results in Mar 25

INTEREST(HY) At CNY 115.49 MM has Grown at 41.9%
OPERATING PROFIT(Q) Lowest at CNY -383.29 MM
OPERATING PROFIT MARGIN(Q) Lowest at -8.28 %

With ROE of 4.59%, it has a expensive valuation with a 6.15 Price to Book Value

Over the past year, while the stock has generated a return of 8.64%, its profits have risen by 1171.9% ; the PEG ratio of the company is 0.1
At the current price, the company has a high dividend yield of 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Iflytek Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

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

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

Is Iflytek Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Iflytek Co., Ltd.

-2.51%

0.76

36.22%

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)

19.58%

EBIT Growth (5y)

-267.83%

EBIT to Interest (avg)

-2.17

Debt to EBITDA (avg)

3.11

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

0.80

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

41.27%

Pledged Shares

Institutional Holding

ROCE (avg)

1.16%

ROE (avg)

5.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

134

Industry P/E

Price to Book Value

6.15

EV to EBIT

-180.32

EV to EBITDA

67.29

EV to Capital Employed

4.51

EV to Sales

4.78

PEG Ratio

0.11

Dividend Yield

0.21%

ROCE (Latest)

-2.50%

ROE (Latest)

4.59%

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

OBV

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

25What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 3,297.27 MM

ROCE(HY)

Highest at 3.86%

RAW MATERIAL COST(Y)

Fallen by -22.16% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 6.08%

NET SALES(Q)

At CNY 4,629.3 MM has Grown at 27.8%

PRE-TAX PROFIT(Q)

At CNY -197.58 MM has Grown at 55.15%

NET PROFIT(Q)

At CNY -195.56 MM has Grown at 52.68%

-10What is not working for the Company

INTEREST(HY)

At CNY 115.49 MM has Grown at 41.9%

OPERATING PROFIT(Q)

Lowest at CNY -383.29 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -8.28 %

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

Operating Cash Flow

Highest at CNY 3,297.27 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 4,629.3 MM has Grown at 27.8%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -197.58 MM has Grown at 55.15%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -195.56 MM has Grown at 52.68%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 6.08%

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 -22.16% (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 Iflytek Co., Ltd.

Interest

At CNY 115.49 MM has Grown at 41.9%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -383.29 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -8.28 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales