Newborn Town, Inc. (9911) 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

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Newborn Town, Inc.

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Why is Newborn Town, Inc. ?

High Management Efficiency with a high ROE of 33.61%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 73.67

Healthy long term growth as Net Sales has grown by an annual rate of 75.01% and Operating profit at 84.39%

With ROE of 44.33%, it has a Attractive valuation with a 7.14 Price to Book Value

Over the past year, while the stock has generated a return of -18.21%, its profits have risen by 29.2% ; the PEG ratio of the company is 1.8

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Newborn Town, Inc. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

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

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

Is Newborn Town, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Newborn Town, Inc.

-18.21%

1.77

62.10%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

75.01%

EBIT Growth (5y)

84.39%

EBIT to Interest (avg)

73.67

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.46

Sales to Capital Employed (avg)

3.33

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

33.61%

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

7.14

EV to EBIT

14.71

EV to EBITDA

13.25

EV to Capital Employed

-37.62

EV to Sales

2.02

PEG Ratio

1.77

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

44.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 2,743.55 MM

NET SALES(Q)

Highest at HKD 4,059.04 MM

RAW MATERIAL COST(Y)

Fallen by -7.37% (YoY

CASH AND EQV(HY)

Highest at HKD 3,117.91 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 12.82 times

NET PROFIT(Q)

At HKD 491.19 MM has Grown at 80.78%

-6What is not working for the Company

INTEREST(HY)

At HKD 8.02 MM has Grown at 5,221.02%

DEBT-EQUITY RATIO (HY)

Highest at -111.46 %

OPERATING PROFIT MARGIN(Q)

Lowest at 13.49 %

Here's what is working for Newborn Town, Inc.

Operating Cash Flow

Highest at HKD 2,743.55 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 (HKD MM)

Net Sales

Highest at HKD 4,059.04 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Net Sales

At HKD 4,059.04 MM has Grown at 32.7%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Net Profit

At HKD 491.19 MM has Grown at 80.78%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Cash and Eqv

Highest at HKD 3,117.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 12.82 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -7.37% (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

Depreciation

Highest at HKD 66.84 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Depreciation

At HKD 66.84 MM has Grown at 43.44%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (HKD MM)

Here's what is not working for Newborn Town, Inc.

Interest

At HKD 8.02 MM has Grown at 5,221.02%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Operating Profit Margin

Lowest at 13.49 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -111.46 %

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