Talkweb Information System Co., Ltd. (002261) 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

Talkweb Information System Co., Ltd.

Why is Talkweb Information System Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.65%

The company has been able to generate a Return on Capital Employed (avg) of 0.65% 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 14.73% and Operating profit at 0.90% over the last 5 years

Positive results in Mar 26

ROCE(HY) Highest at 2.33%
RAW MATERIAL COST(Y) Fallen by -50.23% (YoY)
OPERATING PROFIT(Q) Highest at CNY 54.76 MM

With ROE of 1.44%, it has a fair valuation with a 11.91 Price to Book Value

Over the past year, while the stock has generated a return of 4.80%, its profits have risen by 132.5% ; the PEG ratio of the company is 6.3

Underperformed the market in the last 1 year

The stock has generated a return of 4.80% in the last 1 year, much lower than market (China Shanghai Composite) returns of 23.91%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Talkweb Information System Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Talkweb Information System Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Talkweb Information System Co., Ltd.

1.12%

3.40

51.15%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.73%

EBIT Growth (5y)

0.90%

EBIT to Interest (avg)

-11.10

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.93

Tax Ratio

4.40%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.65%

ROE (avg)

0.87%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

828

Industry P/E

Price to Book Value

11.91

EV to EBIT

904.39

EV to EBITDA

236.36

EV to Capital Employed

16.47

EV to Sales

9.62

PEG Ratio

6.29

Dividend Yield

ROCE (Latest)

1.82%

ROE (Latest)

1.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

No Trend

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

22What is working for the Company

ROCE(HY)

Highest at 2.33%

RAW MATERIAL COST(Y)

Fallen by -50.23% (YoY

OPERATING PROFIT(Q)

Highest at CNY 54.76 MM

OPERATING PROFIT MARGIN(Q)

Highest at 9.22 %

PRE-TAX PROFIT(Q)

Highest at CNY 58.6 MM

NET PROFIT(Q)

Highest at CNY 62.07 MM

-9What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.81 times

NET SALES(Q)

Lowest at CNY 593.58 MM

Here's what is working for Talkweb Information System Co., Ltd.

Pre-Tax Profit

At CNY 58.6 MM has Grown at 1,394.4%

over average net sales of the previous four periods of CNY -4.53 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 62.07 MM has Grown at 3,739.67%

over average net sales of the previous four periods of CNY -1.71 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Profit

Highest at CNY 54.76 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Operating Profit Margin

Highest at 9.22 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CNY 58.6 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 62.07 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Raw Material Cost

Fallen by -50.23% (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 Talkweb Information System Co., Ltd.

Net Sales

At CNY 593.58 MM has Fallen at -25.07%

over average net sales of the previous four periods of CNY 792.18 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 593.58 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 2.81 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio