PAX Global Technology Ltd. (327) 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

PAX Global Technology Ltd.

Lenovo Group Ltd.

Readboy Education Holding Co., Ltd.

Ju Teng International Holdings Ltd.

Why is PAX Global Technology Ltd. ?

High Management Efficiency with a high ROE of 15.23%

Company has very low debt and has enough cash to service the debt requirements

High Debt company with Weak Long Term Fundamental Strength

Positive results in Dec 25

OPERATING CASH FLOW(Y) Highest at HKD 2,521.78 MM
INTEREST COVERAGE RATIO(Q) Highest at 29,413.68
CASH AND EQV(HY) Highest at HKD 4,112.85 MM

With ROE of 8.62%, it has a Attractive valuation with a 0.64 Price to Book Value

Over the past year, while the stock has generated a return of -30.35%, its profits have fallen by -31.2%

Below par performance in long term as well as near term

Along with generating -30.35% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong 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 PAX Global Technology Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

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

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

Is PAX Global Technology Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

PAX Global Technology Ltd.

-30.35%

23.74

34.72%

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)

2.42%

EBIT Growth (5y)

-1.27%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.43

Sales to Capital Employed (avg)

0.95

Tax Ratio

16.50%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

34.97%

ROE (avg)

15.23%

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

0.64

EV to EBIT

2.44

EV to EBITDA

2.13

EV to Capital Employed

0.40

EV to Sales

0.32

PEG Ratio

Dividend Yield

10.66%

ROCE (Latest)

16.26%

ROE (Latest)

8.62%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 2,521.78 MM

INTEREST COVERAGE RATIO(Q)

Highest at 29,413.68

CASH AND EQV(HY)

Highest at HKD 4,112.85 MM

DEBT-EQUITY RATIO (HY)

Lowest at -51.08 %

INVENTORY TURNOVER RATIO(HY)

Highest at 2.28 times

NET SALES(Q)

Highest at HKD 3,167.91 MM

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 11.85% (YoY

DIVIDEND PER SHARE(HY)

Lowest at HKD 2.1

Here's what is working for PAX Global Technology Ltd.

Operating Cash Flow

Highest at HKD 2,521.78 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)

Interest Coverage Ratio

Highest at 29,413.68

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at HKD 3,167.91 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Cash and Eqv

Highest at HKD 4,112.85 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -51.08 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 2.28 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Depreciation

Highest at HKD 58.12 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 58.12 MM has Grown at 7.15%

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 PAX Global Technology Ltd.

Dividend per share

Lowest at HKD 2.1

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (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 (%)

Raw Material Cost

Grown by 11.85% (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 HKD 0.16 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income