TES Touch Embedded Solutions (Xiamen) Co., Ltd. () 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

TES Touch Embedded Solutions (Xiamen) Co., Ltd.

Why is TES Touch Embedded Solutions (Xiamen) Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 16.20% and Operating profit at 7.54% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 103.84 MM
INTEREST(HY) At CNY 6.86 MM has Grown at 15.53%
ROCE(HY) Lowest at 10.39%

With ROE of 9.60%, it has a fair valuation with a 3.88 Price to Book Value

Over the past year, while the stock has generated a return of -12.96%, its profits have risen by 35.8% ; the PEG ratio of the company is 1.1
At the current price, the company has a high dividend yield of 2.6

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 16.78% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.96% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to TES Touch Embedded Solutions (Xiamen) Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

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

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

Is TES Touch Embedded Solutions (Xiamen) Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

TES Touch Embedded Solutions (Xiamen) Co., Ltd.

-12.96%

0.42

49.39%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.20%

EBIT Growth (5y)

7.54%

EBIT to Interest (avg)

58.69

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.04

Sales to Capital Employed (avg)

1.06

Tax Ratio

21.44%

Dividend Payout Ratio

43.91%

Pledged Shares

Institutional Holding

ROCE (avg)

16.40%

ROE (avg)

11.62%

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

3.88

EV to EBIT

33.91

EV to EBITDA

28.41

EV to Capital Employed

4.03

EV to Sales

2.66

PEG Ratio

1.13

Dividend Yield

2.57%

ROCE (Latest)

11.88%

ROE (Latest)

9.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

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

11What is working for the Company

NET PROFIT(HY)

At CNY 69.05 MM has Grown at 95.28%

NET SALES(HY)

At CNY 1,239.56 MM has Grown at 27.87%

RAW MATERIAL COST(Y)

Fallen by -14.75% (YoY

CASH AND EQV(HY)

Highest at CNY 1,420.37 MM

-17What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 103.84 MM

INTEREST(HY)

At CNY 6.86 MM has Grown at 15.53%

ROCE(HY)

Lowest at 10.39%

DEBT-EQUITY RATIO (HY)

Highest at 0.29 %

OPERATING PROFIT(Q)

Lowest at CNY 43.41 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.43 %

NET PROFIT(Q)

Lowest at CNY 29.87 MM

EPS(Q)

Lowest at CNY 0.16

Here's what is working for TES Touch Embedded Solutions (Xiamen) Co., Ltd.

Net Sales

At CNY 1,239.56 MM has Grown at 27.87%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Cash and Eqv

Highest at CNY 1,420.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -14.75% (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 TES Touch Embedded Solutions (Xiamen) Co., Ltd.

Interest

At CNY 6.86 MM has Grown at 15.53%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 103.84 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)

Operating Profit

Lowest at CNY 43.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 7.43 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY 29.87 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

At CNY 29.87 MM has Fallen at -36.98%

over average net sales of the previous four periods of CNY 47.39 MM

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 0.29 %

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