NetDragon Websoft Holdings Ltd. (777) 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

AsiaInfo Technologies Ltd.

Lufax Holding Ltd.

Meitu, Inc.

SenseTime Group, Inc.

Chinasoft International Ltd.

Kingdee International Software Group Co., Ltd.

NetDragon Websoft Holdings Ltd.

YSB, Inc.

Bilibili, Inc.

Weimob, Inc.

Keep, Inc. (China)

Why is NetDragon Websoft Holdings Ltd. ?

Poor long term growth as Operating profit has grown by an annual rate -156.86% of over the last 5 years

Negative results in Dec 24

OPERATING CASH FLOW(Y) Lowest at HKD 2,486.55 MM
ROCE(HY) Lowest at 5.31%
INTEREST COVERAGE RATIO(Q) Lowest at 271.25

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 2.92%, its profits have risen by 76.2%

Underperformed the market in the last 1 year

The stock has generated a return of 2.92% in the last 1 year, much lower than market (Hang Seng Hong Kong) returns of 26.67%

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 NetDragon Websoft Holdings Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

NetDragon Websoft Holdings Ltd.

2.54%

-0.15

45.89%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

26.22%

EBIT Growth (5y)

-156.86%

EBIT to Interest (avg)

-5.72

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.26

Sales to Capital Employed (avg)

0.47

Tax Ratio

100.00%

Dividend Payout Ratio

141.75%

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

49.75%

ROE (avg)

6.18%

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

0.90

EV to EBIT

-135.45

EV to EBITDA

14.24

EV to Capital Employed

0.85

EV to Sales

0.81

PEG Ratio

Dividend Yield

0.10%

ROCE (Latest)

-0.63%

ROE (Latest)

-1.92%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

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

Not enough Data to analyse Financial Trend

Here's what is working for NetDragon Websoft Holdings Ltd.

Inventory Turnover Ratio

Highest at 5.37%

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 -15.79% (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 NetDragon Websoft Holdings Ltd.

Net Profit

At HKD -505.08 MM has Fallen at -1,296.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (HKD MM)

Operating Cash Flow

Lowest at HKD 2,486.55 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 271.25

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at HKD 2,978.9 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Operating Profit

Lowest at HKD 235.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 7.9 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 162.72 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD -505.08 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD -0.18

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)