MGI Tech 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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

MGI Tech Co., Ltd.

Why is MGI Tech Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -8.55% and Operating profit at -215.62% over the last 5 years

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 -28.47%, its profits have risen by 49.3%

Below par performance in long term as well as near term

Along with generating -28.47% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Pharmaceuticals & Biotechnology)

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

Is MGI Tech Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

MGI Tech Co., Ltd.

-5.45%

0.52

40.29%

China Shanghai Composite

3.56%

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)

-6.55%

EBIT Growth (5y)

3.56%

EBIT to Interest (avg)

-37.97

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.33

Tax Ratio

15.80%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

5.52%

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

2.84

EV to EBIT

-56.57

EV to EBITDA

1444.04

EV to Capital Employed

3.85

EV to Sales

6.04

PEG Ratio

Dividend Yield

ROCE (Latest)

-6.80%

ROE (Latest)

-2.81%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bullish

Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 689.52 MM

NET SALES(HY)

At CNY 1,365.96 MM has Grown at 21.14%

NET PROFIT(HY)

Higher at CNY -162.68 MM

RAW MATERIAL COST(Y)

Fallen by -13.19% (YoY

OPERATING PROFIT(Q)

Highest at CNY 106.7 MM

OPERATING PROFIT MARGIN(Q)

Highest at 13.67 %

-10What is not working for the Company

NET PROFIT(Q)

At CNY -59.26 MM has Fallen at -286%

DEBT-EQUITY RATIO (HY)

Highest at -30.74 %

INTEREST(Q)

Highest at CNY 8.41 MM

Here's what is working for MGI Tech Co., Ltd.

Operating Cash Flow

Highest at CNY 689.52 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 1,365.96 MM has Grown at 21.14%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 106.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 13.67 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -13.19% (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 MGI Tech Co., Ltd.

Net Profit

At CNY -59.26 MM has Fallen at -286%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

Highest at CNY 8.41 MM

in the last five periods and Increased by 8.51% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -30.74 %

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