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 19.49% and Operating profit at -252.75% over the last 5 years

The company has declared positive results in Jan 70 after 2 consecutive negative quarters

OPERATING CASH FLOW(Y) Highest at CNY 1,357.25 MM
RAW MATERIAL COST(Y) Fallen by -68.73% (YoY)
CASH AND EQV(HY) Highest at CNY 2,944.5 MM

With ROE of -4.11%, it has a risky valuation with a 17.35 Price to Book Value

Over the past year, while the stock has generated a return of 10.70%, its profits have fallen by -744.2%

Underperformed the market in the last 1 year

The stock has generated a return of 10.70% in the last 1 year, much lower than market (China Shanghai Composite) returns of 25.05%

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.

6.5%

4.74

48.76%

China Shanghai Composite

24.7%

1.93

12.95%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

19.49%

EBIT Growth (5y)

-252.75%

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)

0.85

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

NA (Loss Making)

Industry P/E

Price to Book Value

17.35

EV to EBIT

-480.79

EV to EBITDA

925.55

EV to Capital Employed

21.85

EV to Sales

12.00

PEG Ratio

Dividend Yield

ROCE (Latest)

-4.54%

ROE (Latest)

-4.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

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

22What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,357.25 MM

RAW MATERIAL COST(Y)

Fallen by -68.73% (YoY

CASH AND EQV(HY)

Highest at CNY 2,944.5 MM

DEBT-EQUITY RATIO (HY)

Lowest at -39.79 %

PRE-TAX PROFIT(Q)

Highest at CNY 18.12 MM

NET PROFIT(Q)

Highest at CNY 22.69 MM

-12What is not working for the Company

NET SALES(Q)

At CNY 771.96 MM has Fallen at -16.16%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.4 times

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

Operating Cash Flow

Highest at CNY 1,357.25 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 18.12 MM has Grown at 171.45%

over average net sales of the previous four periods of CNY -25.36 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 22.69 MM has Grown at 201.48%

over average net sales of the previous four periods of CNY -22.36 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 18.12 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 22.69 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Cash and Eqv

Highest at CNY 2,944.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -39.79 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -68.73% (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 771.96 MM has Fallen at -16.16%

over average net sales of the previous four periods of CNY 920.71 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Debtors Turnover Ratio

Lowest at 2.4 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio