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

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 14.52% and Operating profit at -147.36% over the last 5 years
The company is Net-Debt Free

The company has declared Positive results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Highest at CNY 47,216.78 MM
NET PROFIT(HY) At CNY 2,881.33 MM has Grown at 104.73%
ROCE(HY) Highest at 8.71%

With ROE of 0.22%, it has a very attractive valuation with a 1.34 Price to Book Value

Over the past year, while the stock has generated a return of 25.00%, its profits have risen by 103.3% ; the PEG ratio of the company is 5.9

Market Beating performance in long term as well as near term

Along with generating 25.00% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to TCL Technology Group Corp. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is TCL Technology Group Corp. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

TCL Technology Group Corp.

8.97%

0.70

37.77%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.52%

EBIT Growth (5y)

-147.36%

EBIT to Interest (avg)

0.38

Debt to EBITDA (avg)

4.80

Net Debt to Equity (avg)

2.61

Sales to Capital Employed (avg)

0.74

Tax Ratio

4.73%

Dividend Payout Ratio

38.58%

Pledged Shares

Institutional Holding

ROCE (avg)

2.19%

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

812

Industry P/E

Price to Book Value

1.79

EV to EBIT

-1558.74

EV to EBITDA

9.32

EV to Capital Employed

1.27

EV to Sales

1.25

PEG Ratio

7.92

Dividend Yield

2.34%

ROCE (Latest)

-0.08%

ROE (Latest)

0.22%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

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

17What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 47,216.78 MM

NET PROFIT(HY)

At CNY 2,881.33 MM has Grown at 104.73%

ROCE(HY)

Highest at 8.71%

RAW MATERIAL COST(Y)

Fallen by -27.94% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 202.27 %

INVENTORY TURNOVER RATIO(HY)

Highest at 8.43 times

DEBTORS TURNOVER RATIO(HY)

Highest at 7.45 times

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 43.55

INVENTORY TURNOVER RATIO(HY)

Lowest at 7.16 times

OPERATING PROFIT(Q)

Lowest at CNY 422.22 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.97 %

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

Net Profit

At CNY 2,881.33 MM has Grown at 104.73%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 47,216.78 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)

Debt-Equity Ratio

Lowest at 202.27 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 8.43 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 7.45 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -27.94% (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 43.55

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 422.22 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.97 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 7.16 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio