Rigol Technologies 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Rigol Technologies Co., Ltd.

Why is Rigol Technologies Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 2.20%

The company has been able to generate a Return on Capital Employed (avg) of 2.20% signifying low profitability per unit of total capital (equity and debt)

Flat results in Mar 25

PRE-TAX PROFIT(Q) At CNY -12.76 MM has Fallen at -122.79%
NET PROFIT(Q) At CNY -10.07 MM has Fallen at -77.09%
ROCE(HY) Lowest at 2.96%

With ROE of 1.64%, it has a attractive valuation with a 0.79 Price to Book Value

Over the past year, while the stock has generated a return of -12.85%, its profits have risen by 110.3% ; the PEG ratio of the company is 0.6

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -12.85% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Rigol Technologies Co., Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

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

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

Is Rigol Technologies Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Rigol Technologies Co., Ltd.

-12.85%

0.70

44.99%

China Shanghai Composite

15.44%

1.06

14.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

15.45%

EBIT Growth (5y)

59.39%

EBIT to Interest (avg)

8.92

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.58

Sales to Capital Employed (avg)

0.22

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

81.63%

Pledged Shares

Institutional Holding

ROCE (avg)

2.20%

ROE (avg)

2.03%

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

0.79

EV to EBIT

28.17

EV to EBITDA

6.82

EV to Capital Employed

0.50

EV to Sales

0.82

PEG Ratio

0.62

Dividend Yield

ROCE (Latest)

1.77%

ROE (Latest)

1.64%

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

Mildly Bullish

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

9What is working for the Company

NET PROFIT(9M)

At CNY 50.82 MM has Grown at 84.87%

OPERATING CASH FLOW(Y)

Highest at CNY 152.02 MM

NET SALES(9M)

At CNY 627.98 MM has Grown at 24.22%

RAW MATERIAL COST(Y)

Fallen by -22.78% (YoY

-21What is not working for the Company

PRE-TAX PROFIT(Q)

At CNY -12.76 MM has Fallen at -122.79%

NET PROFIT(Q)

At CNY -10.07 MM has Fallen at -77.09%

ROCE(HY)

Lowest at 2.96%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.49%

INTEREST(Q)

At CNY 2.42 MM has Grown at 212.67%

OPERATING PROFIT(Q)

Lowest at CNY -16.57 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -10.04 %

Here's what is working for Rigol Technologies Co., Ltd.

Net Sales

At CNY 627.98 MM has Grown at 24.22%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 152.02 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -22.78% (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 Rigol Technologies Co., Ltd.

Pre-Tax Profit

At CNY -12.76 MM has Fallen at -122.79%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -10.07 MM has Fallen at -77.09%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 2.42 MM has Grown at 212.67%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 1.49% and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at CNY -16.57 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -10.04 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales