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

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 5.44% and Operating profit at 18.09% 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

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

INTEREST COVERAGE RATIO(Q) Lowest at 37.84
RAW MATERIAL COST(Y) Grown by 7.21% (YoY)
INVENTORY TURNOVER RATIO(HY) Lowest at 8.59 times

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 22.49% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -14.52% 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.

138.35%

-0.15

31.56%

China Shanghai Composite

18.97%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-2.64%

EBIT Growth (5y)

-22.85%

EBIT to Interest (avg)

1.19

Debt to EBITDA (avg)

5.82

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.34

Tax Ratio

0.34%

Dividend Payout Ratio

67.11%

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

246

Industry P/E

Price to Book Value

1.94

EV to EBIT

133.81

EV to EBITDA

15.40

EV to Capital Employed

1.90

EV to Sales

3.89

PEG Ratio

Dividend Yield

ROCE (Latest)

1.42%

ROE (Latest)

0.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

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 6.99 %

CASH AND EQV(HY)

Highest at CNY 20,023.52 MM

-25What is not working for the Company

NET PROFIT(Q)

At CNY 5.53 MM has Fallen at -94.09%

ROCE(HY)

Lowest at 0.26%

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.73 times

INTEREST(Q)

At CNY 99.74 MM has Grown at 82.06%

INTEREST COVERAGE RATIO(Q)

Lowest at 150.95

OPERATING PROFIT(Q)

Lowest at CNY 150.55 MM

RAW MATERIAL COST(Y)

Grown by 13.95% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 5.48 %

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

Debt-Equity Ratio

Lowest at 6.99 % 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

Cash and Eqv

Highest at CNY 20,023.52 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Irico Display Devices Co., Ltd.

Net Profit

At CNY 5.53 MM has Fallen at -94.09%

over average net sales of the previous four periods of CNY 93.56 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 99.74 MM has Grown at 82.06%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 150.95

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 150.55 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 7.73 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit Margin

Lowest at 5.48 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 13.95% (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