Piesat Information Technology Co., Ltd. (688066) 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

Piesat Information Technology Co., Ltd.

Why is Piesat Information 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 8.18% and Operating profit at -270.62% 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 5.31% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.18% and Operating profit at -270.62% over the last 5 years

The company has declared negative results for the last 9 consecutive quarters

NET PROFIT(9M) At CNY -1,326.34 MM has Grown at -144.6%
NET SALES(9M) At CNY 851.93 MM has Grown at -15.92%
ROCE(HY) Lowest at -89.22%

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 9.34%, its profits have fallen by -152.3%
At the current price, the company has a high dividend yield of 0

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 Piesat Information Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Piesat Information Technology Co., Ltd.

9.34%

0.76

65.87%

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)

8.18%

EBIT Growth (5y)

-270.62%

EBIT to Interest (avg)

4.09

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

1.73

Sales to Capital Employed (avg)

0.46

Tax Ratio

10.52%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.46%

ROE (avg)

5.31%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

14.40

EV to EBIT

-6.66

EV to EBITDA

-7.33

EV to Capital Employed

4.68

EV to Sales

10.57

PEG Ratio

Dividend Yield

ROCE (Latest)

-70.33%

ROE (Latest)

-232.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 57.48 MM

-25What is not working for the Company

NET PROFIT(9M)

At CNY -1,326.34 MM has Grown at -144.6%

NET SALES(9M)

At CNY 851.93 MM has Grown at -15.92%

ROCE(HY)

Lowest at -89.22%

DEBT-EQUITY RATIO (HY)

Highest at 188.17 %

RAW MATERIAL COST(Y)

Grown by 13.87% (YoY

CASH AND EQV(HY)

Lowest at CNY 536.91 MM

Here's what is working for Piesat Information Technology Co., Ltd.

Operating Cash Flow

Highest at CNY 57.48 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 (CNY MM)

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

Net Profit

At CNY -1,284 MM has Grown at -161.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 122.86 MM has Fallen at -44.35%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debt-Equity Ratio

Highest at 188.17 % 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

Net Sales

Lowest at CNY 122.86 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 536.91 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 13.87% (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