Square Technology Group Co., Ltd. (603339) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Square Technology Group Co., Ltd.

Why is Square Technology Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 9.14% and Operating profit at 6.95% over the last 5 years

With a fall in Net Sales of -28.22%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 3 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY 42.27 MM
NET SALES(HY) At CNY 918.9 MM has Grown at -10.38%
INTEREST(HY) At CNY 0 MM has Grown at 6.1%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.48% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Industrial Manufacturing)

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

Is Square Technology Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Square Technology Group Co., Ltd.

-1.48%

0.82

42.01%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.14%

EBIT Growth (5y)

6.95%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.36

Sales to Capital Employed (avg)

0.83

Tax Ratio

13.90%

Dividend Payout Ratio

30.46%

Pledged Shares

Institutional Holding

ROCE (avg)

18.82%

ROE (avg)

10.29%

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

1.74

EV to EBIT

20.39

EV to EBITDA

14.01

EV to Capital Employed

2.17

EV to Sales

2.06

PEG Ratio

Dividend Yield

1.64%

ROCE (Latest)

10.65%

ROE (Latest)

6.76%

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

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

3What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 10,614,066.55

-25What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 42.27 MM

NET SALES(HY)

At CNY 918.9 MM has Grown at -10.38%

INTEREST(HY)

At CNY 0 MM has Grown at 6.1%

ROCE(HY)

Lowest at 9.12%

RAW MATERIAL COST(Y)

Grown by 12.28% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -36.49 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 18.11%

OPERATING PROFIT(Q)

Lowest at CNY 48.71 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.8 %

PRE-TAX PROFIT(Q)

Lowest at CNY 54.33 MM

NET PROFIT(Q)

Lowest at CNY 48.91 MM

EPS(Q)

Lowest at CNY 0.16

Here's what is working for Square Technology Group Co., Ltd.

Interest Coverage Ratio

Highest at 10,614,066.55 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Here's what is not working for Square Technology Group Co., Ltd.

Operating Cash Flow

Lowest at CNY 42.27 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)

Net Sales

At CNY 918.9 MM has Grown at -10.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

At CNY 0 MM has Grown at 6.1%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 48.71 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.8 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 54.33 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 48.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.16

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at -36.49 %

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 18.11%

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 12.28% (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