Shenzhen Sea Star Technology Co., Ltd. (002137) 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 Sea Star Technology Co., Ltd.

Why is Shenzhen Sea Star Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.11%

The company has been able to generate a Return on Capital Employed (avg) of 1.11% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -7.94% and Operating profit at 3.96% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 40.18 MM
DEBT-EQUITY RATIO (HY) Highest at -8.45 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -7.05%, its profits have fallen by -46.1%

Below par performance in long term as well as near term

Along with generating -7.05% 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 Electronics & Appliances)

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

Is Shenzhen Sea Star Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shenzhen Sea Star Technology Co., Ltd.

-6.14%

1.98

37.26%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.94%

EBIT Growth (5y)

3.96%

EBIT to Interest (avg)

11.09

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.37

Tax Ratio

78.85%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.11%

ROE (avg)

3.98%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

142

Industry P/E

Price to Book Value

3.23

EV to EBIT

229.17

EV to EBITDA

90.04

EV to Capital Employed

4.18

EV to Sales

7.53

PEG Ratio

Dividend Yield

ROCE (Latest)

1.83%

ROE (Latest)

2.28%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

6What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -23.87% (YoY

NET SALES(Q)

Highest at CNY 174.78 MM

NET PROFIT(Q)

At CNY 10.83 MM has Grown at 80.17%

EPS(Q)

Highest at CNY 0.03

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 40.18 MM

DEBT-EQUITY RATIO (HY)

Highest at -8.45 %

Here's what is working for Shenzhen Sea Star Technology Co., Ltd.

Net Sales

Highest at CNY 174.78 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 174.78 MM has Grown at 19.82%

over average net sales of the previous four periods of CNY 145.87 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Profit

At CNY 10.83 MM has Grown at 80.17%

over average net sales of the previous four periods of CNY 6.01 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.03

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -23.87% (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 Shenzhen Sea Star Technology Co., Ltd.

Operating Cash Flow

Lowest at CNY 40.18 MM and Fallen

In each year 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 -8.45 %

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