Shanghai Gench Education Group Ltd. (1525) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

China Kepei Education Group Ltd.

Beauty Farm Medical & Health Industry, Inc.

Edvantage Group Holdings Ltd.

Tongcheng Travel Holdings Ltd.

Fu Shou Yuan International Group Ltd.

The Cross-Harbour (Holdings) Ltd.

New Oriental Education & Technology Group, Inc.

Shanghai Gench Education Group Ltd.

Shoucheng Holdings Ltd.

Fosun Tourism Group

China Travel International Investment Hong Kong Ltd.

Why is Shanghai Gench Education Group Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Flat results in Dec 24

ROCE(HY) Lowest at 9.98%
INTEREST COVERAGE RATIO(Q) Lowest at 801.93
RAW MATERIAL COST(Y) Grown by 19.8% (YoY)

Below par performance in long term as well as near term

Along with generating -2.70% 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 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 Tour, Travel Related Services)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Shanghai Gench Education Group Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Shanghai Gench Education Group Ltd.

-2.37%

-0.19

39.58%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.37%

EBIT Growth (5y)

4.92%

EBIT to Interest (avg)

9.57

Debt to EBITDA (avg)

0.56

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

0.28

Tax Ratio

25.04%

Dividend Payout Ratio

32.61%

Pledged Shares

Institutional Holding

ROCE (avg)

13.61%

ROE (avg)

11.00%

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

0.49

EV to EBIT

3.95

EV to EBITDA

2.79

EV to Capital Employed

0.49

EV to Sales

1.17

PEG Ratio

Dividend Yield

0.69%

ROCE (Latest)

12.50%

ROE (Latest)

9.83%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bullish

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

Not enough Data to analyse Financial Trend

Here's what is working for Shanghai Gench Education Group Ltd.

Dividend Payout Ratio

Highest at 83.13%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at HKD 64.66 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Here's what is not working for Shanghai Gench Education Group Ltd.

Interest Coverage Ratio

Lowest at 801.93

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at HKD 116.31 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin

Lowest at 24.68 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at HKD 61.44 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Pre-Tax Profit

Fallen at -57.01%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Lowest at HKD 47.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

Net Profit

Fallen at -55.84%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD 0.12

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Inventory Turnover Ratio

Lowest at 0%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 19.8% (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 0.4 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income