UCloud Technology Co., Ltd. (688158) 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

UCloud Technology Co., Ltd.

Why is UCloud Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0%

The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Poor long term growth as Net Sales has grown by an annual rate of -4.73% and Operating profit at 2.73% over the last 5 years

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 14.01%, its profits have risen by 19.3%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to UCloud Technology 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 UCloud Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

UCloud Technology Co., Ltd.

62.18%

3.87

65.81%

China Shanghai Composite

19.22%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.54%

EBIT Growth (5y)

12.87%

EBIT to Interest (avg)

-150.35

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.24

Sales to Capital Employed (avg)

0.60

Tax Ratio

5.23%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

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

5.21

EV to EBIT

-147.33

EV to EBITDA

111.95

EV to Capital Employed

5.40

EV to Sales

7.10

PEG Ratio

Dividend Yield

ROCE (Latest)

-3.66%

ROE (Latest)

-1.30%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Bullish

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 259.42 MM

NET SALES(9M)

At CNY 1,347.04 MM has Grown at 17.52%

ROCE(HY)

Highest at 1.58%

PRE-TAX PROFIT(Q)

At CNY 4.75 MM has Grown at 208.56%

NET PROFIT(Q)

At CNY 2.74 MM has Grown at 172.31%

RAW MATERIAL COST(Y)

Fallen by -26.69% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 41.58 times

DEBTORS TURNOVER RATIO(HY)

Highest at 3.59 times

-11What is not working for the Company

INTEREST(HY)

At CNY 3.85 MM has Grown at 193.02%

DEBT-EQUITY RATIO (HY)

Highest at -4.13 %

CASH AND EQV(HY)

Lowest at CNY 1,138.69 MM

Here's what is working for UCloud Technology Co., Ltd.

Pre-Tax Profit

At CNY 4.75 MM has Grown at 208.56%

over average net sales of the previous four periods of CNY 1.54 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 2.74 MM has Grown at 172.31%

over average net sales of the previous four periods of CNY -3.79 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Net Sales

At CNY 1,347.04 MM has Grown at 17.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 259.42 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Inventory Turnover Ratio

Highest at 41.58 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 3.59 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 -26.69% (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 UCloud Technology Co., Ltd.

Interest

At CNY 3.85 MM has Grown at 193.02%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at -4.13 % 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

Cash and Eqv

Lowest at CNY 1,138.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents