Irico Display Devices Co., Ltd. (600707) 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

Irico Display Devices Co., Ltd.

Why is Irico Display Devices Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.64%

The company has been able to generate a Return on Capital Employed (avg) of 3.64% 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 7.81% and Operating profit at 18.62% 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 4.04% signifying low profitability per unit of shareholders funds

With a fall in Net Sales of -9.16%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 2 consecutive quarters
NET PROFIT(HY) At CNY 333.14 MM has Grown at -47.36%
INTEREST(Q) At CNY 109.62 MM has Grown at 70.49%
INTEREST COVERAGE RATIO(Q) Lowest at 335.5

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 -11.48% 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 Electronics & Appliances)

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

Is Irico Display Devices Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Irico Display Devices Co., Ltd.

-11.48%

-0.30

31.73%

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)

7.81%

EBIT Growth (5y)

18.62%

EBIT to Interest (avg)

1.19

Debt to EBITDA (avg)

5.82

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.31

Tax Ratio

0.34%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

3.64%

ROE (avg)

4.04%

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

0.98

EV to EBIT

30.49

EV to EBITDA

6.38

EV to Capital Employed

0.99

EV to Sales

2.30

PEG Ratio

Dividend Yield

ROCE (Latest)

3.24%

ROE (Latest)

3.48%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

DEBT-EQUITY RATIO (HY)

Lowest at 27.88 %

RAW MATERIAL COST(Y)

Fallen by -20.04% (YoY

-18What is not working for the Company

NET PROFIT(HY)

At CNY 333.14 MM has Grown at -47.36%

INTEREST(Q)

At CNY 109.62 MM has Grown at 70.49%

INTEREST COVERAGE RATIO(Q)

Lowest at 335.5

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.5%

OPERATING PROFIT(Q)

Lowest at CNY 367.78 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.49 %

Here's what is working for Irico Display Devices Co., Ltd.

Debt-Equity Ratio

Lowest at 27.88 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -20.04% (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 Irico Display Devices Co., Ltd.

Net Profit

At CNY 333.14 MM has Grown at -47.36%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 109.62 MM has Grown at 70.49%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 335.5

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 367.78 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 12.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 9.5%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio