TOM Group Ltd. (2383) 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

Oriental Enterprise Holdings Ltd.

TOM Group Ltd.

Hong Kong Economic Times Holdings Ltd.

Sing Tao News Corp. Ltd.

Why is TOM Group Ltd. ?

With a Negative Book Value, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Net Sales has grown by an annual rate of -4.00% and Operating profit at -151.91% over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 32.90 times

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at HKD -149.82 MM
DEBT-EQUITY RATIO (HY) Highest at -176.29 %
INVENTORY TURNOVER RATIO(HY) Lowest at 5.7 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 -13%

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 8.25% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.98% returns

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 Media & Entertainment)

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

Is TOM Group Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

TOM Group Ltd.

-13.98%

-1.02

24.00%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.00%

EBIT Growth (5y)

-151.91%

EBIT to Interest (avg)

0.03

Debt to EBITDA (avg)

25.25

Net Debt to Equity (avg)

-1.75

Sales to Capital Employed (avg)

0.40

Tax Ratio

4.68%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.36%

ROE (avg)

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

-0.90

EV to EBIT

-793.80

EV to EBITDA

43.78

EV to Capital Employed

3.58

EV to Sales

7.12

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.45%

ROE (Latest)

Negative BV

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

OBV

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

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.68% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.33 times

NET PROFIT(Q)

Highest at HKD -104.6 MM

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD -149.82 MM

DEBT-EQUITY RATIO (HY)

Highest at -176.29 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.7 times

NET SALES(Q)

Lowest at HKD 338.69 MM

Here's what is working for TOM Group Ltd.

Net Profit

Highest at HKD -104.6 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Debtors Turnover Ratio

Highest at 3.33 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 -5.68% (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 TOM Group Ltd.

Operating Cash Flow

Lowest at HKD -149.82 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 (HKD MM)

Debt-Equity Ratio

Highest at -176.29 % and Grown

In each half year 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

Net Sales

Lowest at HKD 338.69 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Inventory Turnover Ratio

Lowest at 5.7 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio