TCL Technology Group Corp. (000100) 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

TCL Technology Group Corp.

Why is TCL Technology Group Corp. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 3.08%

Poor long term growth as Net Sales has grown by an annual rate of 22.96% and Operating profit at -172.69% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

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 -13.98%, its profits have fallen by -303.2%

Below par performance in long term as well as near term

Along with generating -13.98% 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 Telecom - Equipment & Accessories)

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

Is TCL Technology Group Corp. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

TCL Technology Group Corp.

-100.0%

-0.03

26.78%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.96%

EBIT Growth (5y)

-172.69%

EBIT to Interest (avg)

0.80

Debt to EBITDA (avg)

5.37

Net Debt to Equity (avg)

2.61

Sales to Capital Employed (avg)

0.74

Tax Ratio

13.24%

Dividend Payout Ratio

59.38%

Pledged Shares

Institutional Holding

ROCE (avg)

3.08%

ROE (avg)

12.37%

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

1.46

EV to EBIT

-62.06

EV to EBITDA

7.85

EV to Capital Employed

1.13

EV to Sales

1.29

PEG Ratio

Dividend Yield

1.20%

ROCE (Latest)

-1.81%

ROE (Latest)

-8.35%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 38,467.16 MM

NET PROFIT(Q)

At CNY 1,368.9 MM has Grown at 453.4%

RAW MATERIAL COST(Y)

Fallen by -76.27% (YoY

PRE-TAX PROFIT(Q)

At CNY -189.26 MM has Grown at 84.46%

EPS(Q)

Highest at CNY 0.05

-8What is not working for the Company

NET PROFIT(9M)

At CNY 1,590.89 MM has Grown at -32.39%

INTEREST COVERAGE RATIO(Q)

Lowest at 34.84

DEBT-EQUITY RATIO (HY)

Highest at 275.69 %

OPERATING PROFIT(Q)

Lowest at CNY 427.79 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.07 %

Here's what is working for TCL Technology Group Corp.

Net Profit

At CNY 1,368.9 MM has Grown at 453.4%

over average net sales of the previous four periods of CNY 247.36 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 38,467.16 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 -189.26 MM has Grown at 84.46%

over average net sales of the previous four periods of CNY -1,217.64 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 1,368.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -76.27% (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 TCL Technology Group Corp.

Interest Coverage Ratio

Lowest at 34.84

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 427.79 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.07 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 275.69 %

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