Neusoft Corp. (600718) 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

Neusoft Corp.

Why is Neusoft Corp. ?

Poor Management Efficiency with a low ROCE of 0.33%

The company has been able to generate a Return on Capital Employed (avg) of 0.33% signifying low profitability per unit of total capital (equity and debt)

Negative results in Mar 25

OPERATING CASH FLOW(Y) Lowest at CNY 851.6 MM
PRE-TAX PROFIT(Q) At CNY 10.42 MM has Fallen at -78.76%
NET PROFIT(Q) At CNY -16.99 MM has Fallen at -853.9%

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 -5.94%, its profits have fallen by -82%
At the current price, the company has a high dividend yield of 1.4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -5.94% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Neusoft Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Neusoft Corp.

-5.94%

0.70

38.84%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.60%

EBIT Growth (5y)

5.65%

EBIT to Interest (avg)

-1.29

Debt to EBITDA (avg)

0.17

Net Debt to Equity (avg)

-0.10

Sales to Capital Employed (avg)

0.98

Tax Ratio

12.42%

Dividend Payout Ratio

281.95%

Pledged Shares

Institutional Holding

ROCE (avg)

0.33%

ROE (avg)

2.65%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

913

Industry P/E

Price to Book Value

1.38

EV to EBIT

-139.63

EV to EBITDA

53.53

EV to Capital Employed

1.40

EV to Sales

1.05

PEG Ratio

Dividend Yield

1.40%

ROCE (Latest)

-1.00%

ROE (Latest)

0.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 1.72%

DEBTORS TURNOVER RATIO(HY)

Highest at 5.62%

-22What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 851.6 MM

PRE-TAX PROFIT(Q)

At CNY 10.42 MM has Fallen at -78.76%

NET PROFIT(Q)

At CNY -16.99 MM has Fallen at -853.9%

INTEREST(HY)

At CNY 14.82 MM has Grown at 6.56%

RAW MATERIAL COST(Y)

Grown by 6.83% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -54.66 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.98 %

Here's what is working for Neusoft Corp.

Inventory Turnover Ratio

Highest at 1.72%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 5.62%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Neusoft Corp.

Pre-Tax Profit

At CNY 10.42 MM has Fallen at -78.76%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -16.99 MM has Fallen at -853.9%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 851.6 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 (CNY MM)

Interest

At CNY 14.82 MM has Grown at 6.56%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -54.66 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.98 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 6.83% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

Non Operating Income

Highest at CNY 2.87 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income