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. ?

Positive results in Jun 25

OPERATING CASH FLOW(Y) Highest at CNY 1,127.35 MM
ROCE(HY) Highest at 19.73%
INTEREST COVERAGE RATIO(Q) The company hardly has any interest cost

With ROE of 18.50%, it has a very attractive valuation with a 1.87 Price to Book Value

Over the past year, while the stock has generated a return of 93.10%, its profits have risen by 109.6% ; the PEG ratio of the company is 0.2
At the current price, the company has a high dividend yield of 0.4

Market Beating Performance

The stock has generated a return of 93.10% in the last 1 year, much higher than market (China Shanghai Composite) returns of 15.18%

Real-Time Research Report

Verdict Report

How much should you buy?

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.

58.26%

3.07

75.30%

China Shanghai Composite

24.27%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.96%

EBIT Growth (5y)

218.55%

EBIT to Interest (avg)

-1.23

Debt to EBITDA (avg)

2.07

Net Debt to Equity (avg)

0.32

Sales to Capital Employed (avg)

1.91

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

42.84%

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

1.87

EV to EBIT

19.67

EV to EBITDA

13.75

EV to Capital Employed

1.67

EV to Sales

0.77

PEG Ratio

0.20

Dividend Yield

0.42%

ROCE (Latest)

8.49%

ROE (Latest)

18.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

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

29What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,127.35 MM

ROCE(HY)

Highest at 19.73%

INTEREST COVERAGE RATIO(Q)

The company hardly has any interest cost

NET SALES(Q)

Highest at CNY 4,102.06 MM

OPERATING PROFIT(Q)

Highest at CNY 403.78 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.84 %

PRE-TAX PROFIT(Q)

Highest at CNY 404.23 MM

NET PROFIT(Q)

Highest at CNY 344.85 MM

EPS(Q)

Highest at CNY 0.43

-8What is not working for the Company

INTEREST(HY)

At CNY 19.63 MM has Grown at 6.4%

RAW MATERIAL COST(Y)

Grown by 10.04% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 31.55 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.9%

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

Pre-Tax Profit

At CNY 404.23 MM has Grown at 228.54%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Sales

At CNY 4,102.06 MM has Grown at 42.01%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Net Profit

At CNY 344.85 MM has Grown at 127.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 1,127.35 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 4,102.06 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 403.78 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 9.84 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 404.23 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 344.85 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.43

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Here's what is not working for Ruijie Networks Co., Ltd.

Interest

At CNY 19.63 MM has Grown at 6.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 31.55 %

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

Debtors Turnover Ratio

Lowest at 5.9%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 10.04% (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