Microware Group Ltd. (1985) 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

Automated Systems Holdings Ltd.

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Microware Group Ltd.

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Hang Tai Yue Group Holdings Ltd.

Cherish Sunshine International Ltd.

MTT Group Holdings Ltd.

Why is Microware Group Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 2.04% and Operating profit at -31.58% over the last 5 years

Negative results in Sep 25

OPERATING CASH FLOW(Y) Lowest at HKD 55.35 MM
ROCE(HY) Lowest at -0.83%
INTEREST COVERAGE RATIO(Q) Lowest at 168.64

With ROE of 2.02%, it has a Very Expensive valuation with a 2.28 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.58%, its profits have fallen by -87.6%

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 8.25% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.58% 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 Computers - Software & Consulting)

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

Is Microware Group Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Microware Group Ltd.

-100.0%

0.09

47.82%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

2.04%

EBIT Growth (5y)

-31.58%

EBIT to Interest (avg)

34.38

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.78

Sales to Capital Employed (avg)

5.23

Tax Ratio

54.96%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1,067.51%

ROE (avg)

14.77%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

113

Industry P/E

Price to Book Value

2.28

EV to EBIT

15.46

EV to EBITDA

9.26

EV to Capital Employed

6.88

EV to Sales

0.22

PEG Ratio

Dividend Yield

ROCE (Latest)

44.52%

ROE (Latest)

2.02%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

No Trend

OBV

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by 0.96% (YoY

-13What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 55.35 MM

ROCE(HY)

Lowest at -0.83%

INTEREST COVERAGE RATIO(Q)

Lowest at 168.64

CASH AND EQV(HY)

Lowest at HKD 128.62 MM

OPERATING PROFIT(Q)

Lowest at HKD 3.51 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.53 %

PRE-TAX PROFIT(Q)

Fallen at -52.2%

NET PROFIT(Q)

Fallen at -71.44%

Here's what is working for Microware Group Ltd.

Raw Material Cost

Fallen by 0.96% (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 Microware Group Ltd.

Operating Cash Flow

Lowest at HKD 55.35 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 (HKD MM)

Interest Coverage Ratio

Lowest at 168.64

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 HKD 3.51 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 0.53 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -52.2%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Fallen at -71.44%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Cash and Eqv

Lowest at HKD 128.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents