Shenzhen Farben Information Technology 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

Shenzhen Farben Information Technology Co., Ltd.

Why is Shenzhen Farben Information Technology Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 23.10% and Operating profit at -7.08% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At CNY 2.52 MM has Grown at 30.5%
OPERATING CASH FLOW(Y) Lowest at CNY -64.66 MM
NET PROFIT(HY) At CNY 41.7 MM has Grown at -23.31%

With ROE of 5.09%, it has a expensive valuation with a 3.83 Price to Book Value

Over the past year, while the stock has generated a return of -19.60%, its profits have fallen by -18.9%
At the current price, the company has a high dividend yield of 0.2

Below par performance in long term as well as near term

Along with generating -19.60% returns in the last 1 year, the stock has also underperformed China Shanghai Composite 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 Software Products)

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

Is Shenzhen Farben Information Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Farben Information Technology Co., Ltd.

-19.6%

1.52

44.17%

China Shanghai Composite

21.22%

1.59

13.38%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

23.10%

EBIT Growth (5y)

-7.08%

EBIT to Interest (avg)

16.03

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

1.91

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

20.31%

Pledged Shares

Institutional Holding

ROCE (avg)

12.64%

ROE (avg)

8.43%

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

3.83

EV to EBIT

95.67

EV to EBITDA

71.76

EV to Capital Employed

5.13

EV to Sales

1.60

PEG Ratio

Dividend Yield

0.15%

ROCE (Latest)

5.36%

ROE (Latest)

5.09%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

No Trend

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

6What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 3.24 times

NET SALES(Q)

At CNY 1,398.23 MM has Grown at 29.64%

-17What is not working for the Company

INTEREST(HY)

At CNY 2.52 MM has Grown at 30.5%

OPERATING CASH FLOW(Y)

Lowest at CNY -64.66 MM

NET PROFIT(HY)

At CNY 41.7 MM has Grown at -23.31%

ROCE(HY)

Lowest at 4.52%

INVENTORY TURNOVER RATIO(HY)

Lowest at 42.23 times

DEBT-EQUITY RATIO (HY)

Highest at -23.63 %

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

Net Sales

At CNY 1,398.23 MM has Grown at 29.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 3.24 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Interest

At CNY 2.52 MM has Grown at 30.5%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 41.7 MM has Grown at -23.31%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 42.23 times 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 Cash Flow

Lowest at CNY -64.66 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -23.63 %

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