iReader Technology Co., Ltd. (603533) 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

iReader Technology Co., Ltd.

Why is iReader Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.17% and Operating profit at -190.06% over the last 5 years

INTEREST(HY) At CNY 0.5 MM has Grown at 90.14%
PRE-TAX PROFIT(Q) At CNY -71.43 MM has Fallen at -665.01%
OPERATING CASH FLOW(Y) Lowest at CNY 47.86 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -9.82%, its profits have risen by 13.9%
At the current price, the company has a high dividend yield of 0.5

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.82% 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 Software Products)

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

Is iReader Technology Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

iReader Technology Co., Ltd.

-9.82%

0.21

50.86%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.17%

EBIT Growth (5y)

-190.06%

EBIT to Interest (avg)

38.92

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.79

Sales to Capital Employed (avg)

1.07

Tax Ratio

34.28%

Dividend Payout Ratio

89.05%

Pledged Shares

Institutional Holding

ROCE (avg)

22.39%

ROE (avg)

3.78%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.55

EV to EBIT

-78.00

EV to EBITDA

-724.46

EV to Capital Employed

10.41

EV to Sales

2.42

PEG Ratio

Dividend Yield

0.52%

ROCE (Latest)

-13.35%

ROE (Latest)

-2.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Bullish

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

12What is working for the Company

NET PROFIT(HY)

Higher at CNY 9.15 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3,693.83%

RAW MATERIAL COST(Y)

Fallen by 0.69% (YoY

-25What is not working for the Company

INTEREST(HY)

At CNY 0.5 MM has Grown at 90.14%

PRE-TAX PROFIT(Q)

At CNY -71.43 MM has Fallen at -665.01%

OPERATING CASH FLOW(Y)

Lowest at CNY 47.86 MM

NET SALES(HY)

At CNY 1,307.12 MM has Grown at -11.59%

OPERATING PROFIT(Q)

Lowest at CNY -77.31 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -12.07 %

NET PROFIT(Q)

Lowest at CNY -75.36 MM

EPS(Q)

Lowest at CNY -0.17

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

Inventory Turnover Ratio

Highest at 3,693.83% and Grown

In each half year 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 0.69% (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 iReader Technology Co., Ltd.

Interest

At CNY 0.5 MM has Grown at 90.14%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

At CNY -71.43 MM has Fallen at -665.01%

over average net sales of the previous four periods of CNY 12.64 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -75.36 MM has Fallen at -810.53%

over average net sales of the previous four periods of CNY 10.61 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,307.12 MM has Grown at -11.59%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 47.86 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Operating Profit

Lowest at CNY -77.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -12.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY -75.36 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.17

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)