iSoftStone Information Technology (Group) 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

iSoftStone Information Technology (Group) Co., Ltd.

Why is iSoftStone Information Technology (Group) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.97%

The company has been able to generate a Return on Capital Employed (avg) of 4.97% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 23.62% and Operating profit at -74.15% over the last 5 years

Negative results in Mar 25

NET PROFIT(HY) At CNY -92.99 MM has Grown at -154.92%
INTEREST(HY) At CNY 107.28 MM has Grown at 81.13%
OPERATING CASH FLOW(Y) Lowest at CNY 286.95 MM

With ROE of 0.53%, it has a expensive valuation with a 3.06 Price to Book Value

Over the past year, while the stock has generated a return of -21.25%, its profits have fallen by -69.3%

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 15.18% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -21.25% 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 iSoftStone Information Technology (Group) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

iSoftStone Information Technology (Group) Co., Ltd.

-100.0%

0.77

47.84%

China Shanghai Composite

15.19%

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)

23.62%

EBIT Growth (5y)

-74.15%

EBIT to Interest (avg)

5.56

Debt to EBITDA (avg)

0.82

Net Debt to Equity (avg)

0.17

Sales to Capital Employed (avg)

1.56

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

52.83%

Pledged Shares

Institutional Holding

ROCE (avg)

4.97%

ROE (avg)

5.61%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

574

Industry P/E

Price to Book Value

3.06

EV to EBIT

1988.45

EV to EBITDA

54.44

EV to Capital Employed

2.95

EV to Sales

0.92

PEG Ratio

Dividend Yield

ROCE (Latest)

0.15%

ROE (Latest)

0.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

11What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -11.67% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 4.16%

NET SALES(Q)

At CNY 6,978.38 MM has Grown at 28.79%

-18What is not working for the Company

NET PROFIT(HY)

At CNY -92.99 MM has Grown at -154.92%

INTEREST(HY)

At CNY 107.28 MM has Grown at 81.13%

OPERATING CASH FLOW(Y)

Lowest at CNY 286.95 MM

DEBT-EQUITY RATIO (HY)

Highest at 19.81 %

OPERATING PROFIT(Q)

Lowest at CNY -229.42 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.29 %

Here's what is working for iSoftStone Information Technology (Group) Co., Ltd.

Net Sales

At CNY 6,978.38 MM has Grown at 28.79%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 4.16%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -11.67% (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 iSoftStone Information Technology (Group) Co., Ltd.

Net Profit

At CNY -92.99 MM has Grown at -154.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 107.28 MM has Grown at 81.13%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 286.95 MM and Fallen

In each year 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 -229.42 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.29 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 19.81 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio