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.

-32.26%

0.52

40.29%

China Shanghai Composite

25.09%

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)

-8.55%

EBIT Growth (5y)

-215.62%

EBIT to Interest (avg)

-46.81

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

0.33

Tax Ratio

8.92%

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

3.61

EV to EBIT

-41.66

EV to EBITDA

-190.55

EV to Capital Employed

4.94

EV to Sales

8.74

PEG Ratio

Dividend Yield

ROCE (Latest)

-11.87%

ROE (Latest)

-5.32%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bullish

Mildly Bearish

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

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY -190.6 MM

PRE-TAX PROFIT(Q)

Highest at CNY 16.97 MM

RAW MATERIAL COST(Y)

Fallen by -19.72% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 1.48 times

NET PROFIT(Q)

At CNY -15.95 MM has Grown at 90.34%

-11What is not working for the Company

INTEREST(HY)

At CNY 15.59 MM has Grown at 27.16%

DEBT-EQUITY RATIO (HY)

Highest at -25.56 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.18 times

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

Operating Cash Flow

Highest at CNY -190.6 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)

Pre-Tax Profit

Highest at CNY 16.97 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 16.97 MM has Grown at 111.09%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -15.95 MM has Grown at 90.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Inventory Turnover Ratio

Highest at 1.48 times

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 -19.72% (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.

Interest

At CNY 15.59 MM has Grown at 27.16%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -25.56 % and Grown

In each half year 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

Debtors Turnover Ratio

Lowest at 2.18 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio