Verisilicon Microelectronics (Shanghai) Co., Ltd. (688521) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Verisilicon Microelectronics (Shanghai) Co., Ltd.

Why is Verisilicon Microelectronics (Shanghai) Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.07%

The company has been able to generate a Return on Capital Employed (avg) of 1.07% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 10.69% and Operating profit at -225.08% over the last 5 years

The company has declared Negative results for the last 7 consecutive quarters

INTEREST(HY) At CNY 18.84 MM has Grown at 37.44%
NET SALES(Q) At CNY 387.66 MM has Fallen at -33.03%
ROCE(HY) Lowest at -27.82%

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 171.01%, its profits have fallen by -8.9%

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 Other Electrical Equipment)

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

Is Verisilicon Microelectronics (Shanghai) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Verisilicon Microelectronics (Shanghai) Co., Ltd.

171.01%

4.36

79.70%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.69%

EBIT Growth (5y)

-225.08%

EBIT to Interest (avg)

-7.61

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.39

Sales to Capital Employed (avg)

0.67

Tax Ratio

3.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.07%

ROE (avg)

0.62%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

28.05

EV to EBIT

-157.01

EV to EBITDA

-263.71

EV to Capital Employed

37.70

EV to Sales

42.49

PEG Ratio

Dividend Yield

ROCE (Latest)

-24.01%

ROE (Latest)

-17.63%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

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

8What is working for the Company

NET SALES(HY)

At CNY 1,057.4 MM has Grown at 19.06%

NET PROFIT(HY)

Higher at CNY -424.98 MM

RAW MATERIAL COST(Y)

Fallen by -33.69% (YoY

-24What is not working for the Company

INTEREST(HY)

At CNY 18.84 MM has Grown at 37.44%

NET SALES(Q)

At CNY 387.66 MM has Fallen at -33.03%

ROCE(HY)

Lowest at -27.82%

DEBT-EQUITY RATIO (HY)

Highest at 40.99 %

OPERATING PROFIT(Q)

Lowest at CNY -212.02 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -54.69 %

PRE-TAX PROFIT(Q)

Lowest at CNY -214.82 MM

NET PROFIT(Q)

Lowest at CNY -220.26 MM

EPS(Q)

Lowest at CNY -0.44

Here's what is working for Verisilicon Microelectronics (Shanghai) Co., Ltd.

Raw Material Cost

Fallen by -33.69% (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 Verisilicon Microelectronics (Shanghai) Co., Ltd.

Interest

At CNY 18.84 MM has Grown at 37.44%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Sales

At CNY 387.66 MM has Fallen at -33.03%

over average net sales of the previous four periods of CNY 578.87 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -214.82 MM has Fallen at -49.22%

over average net sales of the previous four periods of CNY -143.96 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -220.26 MM has Fallen at -46.72%

over average net sales of the previous four periods of CNY -150.13 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at 40.99 % 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

Operating Profit

Lowest at CNY -212.02 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -54.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -214.82 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -220.26 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.44

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)