Offcn Education Technology Co., Ltd. (002607) 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

Offcn Education Technology Co., Ltd.

Why is Offcn Education Technology Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 12.80%

Poor long term growth as Net Sales has grown by an annual rate of -28.41% and Operating profit at -33.73% over the last 5 years
The company is Net-Debt Free

Flat results in Mar 26

NET PROFIT(HY) At CNY 11.93 MM has Grown at -79.22%
INTEREST COVERAGE RATIO(Q) Lowest at 381.64
CASH AND EQV(HY) Lowest at CNY 189.57 MM

With ROE of 7.91%, it has a expensive valuation with a 14.10 Price to Book Value

Over the past year, while the stock has generated a return of -31.67%, its profits have fallen by -55.5%

Below par performance in long term as well as near term

Along with generating -31.67% 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 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 Miscellaneous)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Offcn Education Technology Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Offcn Education Technology Co., Ltd.

-36.08%

0.33

37.58%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-28.41%

EBIT Growth (5y)

-33.73%

EBIT to Interest (avg)

-1.13

Debt to EBITDA (avg)

1.16

Net Debt to Equity (avg)

2.04

Sales to Capital Employed (avg)

0.96

Tax Ratio

42.62%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

12.80%

ROE (avg)

14.20%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

178

Industry P/E

Price to Book Value

14.10

EV to EBIT

39.26

EV to EBITDA

22.72

EV to Capital Employed

5.76

EV to Sales

5.64

PEG Ratio

Dividend Yield

ROCE (Latest)

14.67%

ROE (Latest)

7.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

13What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 189.93 %

RAW MATERIAL COST(Y)

Fallen by -22.9% (YoY

NET SALES(Q)

Highest at CNY 599.83 MM

PRE-TAX PROFIT(Q)

Highest at CNY 90.33 MM

NET PROFIT(Q)

Highest at CNY 47.33 MM

EPS(Q)

Highest at CNY 0.01

-17What is not working for the Company

NET PROFIT(HY)

At CNY 11.93 MM has Grown at -79.22%

INTEREST COVERAGE RATIO(Q)

Lowest at 381.64

CASH AND EQV(HY)

Lowest at CNY 189.57 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 9.95 times

INTEREST(Q)

Highest at CNY 37.76 MM

Here's what is working for Offcn Education Technology Co., Ltd.

Pre-Tax Profit

At CNY 90.33 MM has Grown at 258.7%

over average net sales of the previous four periods of CNY 25.18 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 47.33 MM has Grown at 234.62%

over average net sales of the previous four periods of CNY 14.14 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at 189.93 % and Grown

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

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Net Sales

Highest at CNY 599.83 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 90.33 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 47.33 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.01

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -22.9% (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 Offcn Education Technology Co., Ltd.

Interest

At CNY 37.76 MM has Grown at 48.78%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 381.64

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

Highest at CNY 37.76 MM

in the last five periods and Increased by 48.78% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Cash and Eqv

Lowest at CNY 189.57 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 9.95 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio