NCS Testing Technology Co., Ltd. (300797) 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

NCS Testing Technology Co., Ltd.

Why is NCS Testing Technology Co., Ltd. ?

Flat results in Mar 26

DEBTORS TURNOVER RATIO(HY) Lowest at 2.34 times
INTEREST COVERAGE RATIO(Q) Lowest at 538.59
INTEREST(Q) Highest at CNY 1.52 MM

With ROE of 10.98%, it has a very attractive valuation with a 3.72 Price to Book Value

Over the past year, while the stock has generated a return of -0.78%, its profits have risen by 15.3% ; the PEG ratio of the company is 2.2
At the current price, the company has a high dividend yield of 0.9

Below par performance in long term as well as near term

Along with generating -0.78% 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 hold?

Overall Portfolio exposure to NCS Testing Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Miscellaneous should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Miscellaneous)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is NCS Testing Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

NCS Testing Technology Co., Ltd.

-15.5%

1.02

42.79%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.62%

EBIT Growth (5y)

6.04%

EBIT to Interest (avg)

12.11

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

0.83

Tax Ratio

6.92%

Dividend Payout Ratio

31.33%

Pledged Shares

Institutional Holding

ROCE (avg)

7.99%

ROE (avg)

10.11%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.83

EV to EBIT

55.70

EV to EBITDA

27.91

EV to Capital Employed

3.88

EV to Sales

4.18

PEG Ratio

2.28

Dividend Yield

0.89%

ROCE (Latest)

6.97%

ROE (Latest)

10.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 205.02 MM

PRE-TAX PROFIT(Q)

At CNY 23.94 MM has Grown at 134.06%

RAW MATERIAL COST(Y)

Fallen by -8.85% (YoY

NET SALES(Q)

At CNY 269.65 MM has Grown at 23.09%

-10What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.34 times

INTEREST COVERAGE RATIO(Q)

Lowest at 538.59

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.67 times

INTEREST(Q)

Highest at CNY 1.52 MM

OPERATING PROFIT(Q)

Lowest at CNY 8.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 3.03 %

Here's what is working for NCS Testing Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 205.02 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

At CNY 23.94 MM has Grown at 134.06%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 269.65 MM has Grown at 23.09%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -8.85% (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 NCS Testing Technology Co., Ltd.

Interest

At CNY 1.52 MM has Grown at 17.73%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 538.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debtors Turnover Ratio

Lowest at 2.34 times and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Interest

Highest at CNY 1.52 MM

in the last five periods and Increased by 17.73% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 8.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 3.03 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 1.67 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio