Nextool Technology Co., Ltd. () 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

Nextool Technology Co., Ltd.

Why is Nextool Technology Co., Ltd. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 23.46% and Operating profit at 37.08% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 6.35% signifying low profitability per unit of shareholders funds

Flat results in Sep 25

DEBT-EQUITY RATIO (HY) Highest at -72.13 %
NET SALES(Q) Fallen at -10.43%

With ROE of 7.25%, it has a very attractive valuation with a 3.59 Price to Book Value

Over the past year, while the stock has generated a return of 83.43%, its profits have risen by 16% ; the PEG ratio of the company is 3.1

Market Beating performance in long term as well as near term

Along with generating 83.43% returns in the last 1 year, the stock has outperformed 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 Nextool Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

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

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

Is Nextool Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Nextool Technology Co., Ltd.

-100.0%

2.78

56.93%

China Shanghai Composite

16.78%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.35%

EBIT Growth (5y)

7.08%

EBIT to Interest (avg)

48.37

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.76

Sales to Capital Employed (avg)

0.25

Tax Ratio

10.74%

Dividend Payout Ratio

56.71%

Pledged Shares

Institutional Holding

ROCE (avg)

22.66%

ROE (avg)

6.35%

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

1.27

EV to EBIT

8.84

EV to EBITDA

7.82

EV to Capital Employed

1.93

EV to Sales

1.99

PEG Ratio

Dividend Yield

ROCE (Latest)

21.83%

ROE (Latest)

6.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Bullish

OBV

Bullish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 46.25 MM

DEBT-EQUITY RATIO (HY)

Highest at -71.07 %

RAW MATERIAL COST(Y)

Grown by 23.09% (YoY

OPERATING PROFIT(Q)

Lowest at CNY 14.77 MM

PRE-TAX PROFIT(Q)

Fallen at -37.23%

NET PROFIT(Q)

Fallen at -37.19%

Here's what is not working for Nextool Technology Co., Ltd.

Operating Cash Flow

Lowest at CNY 46.25 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)

Debt-Equity Ratio

Highest at -71.07 % and Grown

In each half year 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

Operating Profit

Lowest at CNY 14.77 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Fallen at -37.23%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -37.19%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Raw Material Cost

Grown by 23.09% (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