Ruijie Networks 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

Ruijie Networks Co., Ltd.

Why is Ruijie Networks Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.82%

The company has been able to generate a Return on Capital Employed (avg) of 1.82% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 9.07% and Operating profit at 106.93% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 11.24% signifying low profitability per unit of shareholders funds

Flat results in Mar 26

NET PROFIT(HY) At CNY 138.27 MM has Grown at -48.68%
INTEREST(Q) At CNY 8.25 MM has Grown at 28.52%

With ROE of 16.98%, it has a attractive valuation with a 14.74 Price to Book Value

Over the past year, while the stock has generated a return of 35.91%, its profits have risen by 57.6% ; the PEG ratio of the company is 60
At the current price, the company has a high dividend yield of 0.1

Market Beating performance in long term as well as near term

Along with generating 35.91% 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 Ruijie Networks Co., Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

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

Is Ruijie Networks Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Ruijie Networks Co., Ltd.

35.91%

4.52

72.43%

China Shanghai Composite

20.36%

1.53

13.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.07%

EBIT Growth (5y)

106.93%

EBIT to Interest (avg)

-1.23

Debt to EBITDA (avg)

2.07

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

1.89

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

59.97%

Pledged Shares

Institutional Holding

ROCE (avg)

1.82%

ROE (avg)

11.24%

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

14.74

EV to EBIT

138.87

EV to EBITDA

105.04

EV to Capital Employed

13.55

EV to Sales

5.26

PEG Ratio

59.95

Dividend Yield

0.05%

ROCE (Latest)

9.76%

ROE (Latest)

16.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,242.59 MM

RAW MATERIAL COST(Y)

Fallen by 0.74% (YoY

PRE-TAX PROFIT(Q)

At CNY 126.13 MM has Grown at 53.52%

-9What is not working for the Company

NET PROFIT(HY)

At CNY 138.27 MM has Grown at -48.68%

INTEREST(Q)

At CNY 8.25 MM has Grown at 28.52%

Here's what is working for Ruijie Networks Co., Ltd.

Operating Cash Flow

Highest at CNY 1,242.59 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)

Pre-Tax Profit

At CNY 126.13 MM has Grown at 53.52%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Raw Material Cost

Fallen by 0.74% (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 Ruijie Networks Co., Ltd.

Net Profit

At CNY 138.27 MM has Grown at -48.68%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 8.25 MM has Grown at 28.52%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)