Virscend Education Co. Ltd. (1565) 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

JH Educational Technology, Inc.

China Gingko Education Group Co., Ltd.

Water Oasis Group Ltd.

China Xinhua Education Group Ltd.

Virscend Education Co. Ltd.

China Wan Tong Yuan (Holdings) Ltd.

Success Universe Group Ltd.

Poly Culture Group Corp. Ltd.

Orient Victory Smart Urban Services Holding Ltd.

Optima Automobile Group Holdings Ltd.

Feiyang International Holdings Group Ltd.

Why is Virscend Education Co. Ltd. ?

High Management Efficiency with a high ROCE of 1,196.07%

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -10.80% and Operating profit at -11.07% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of -10.80% and Operating profit at -11.07% over the last 5 years

Flat results in Feb 25

OPERATING CASH FLOW(Y) Lowest at HKD 551.14 MM
OPERATING PROFIT MARGIN(Q) Lowest at 31.95 %

With ROE of 8.82%, it has a Expensive valuation with a 0.64 Price to Book Value

Over the past year, while the stock has generated a return of 12.89%, its profits have risen by 54.9% ; the PEG ratio of the company is 0.1

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Virscend Education Co. Ltd. should be less than 10%
Overall Portfolio exposure to Tour, Travel Related Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Tour, Travel Related Services)

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

Is Virscend Education Co. Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Virscend Education Co. Ltd.

12.89%

0.29

56.75%

Hang Seng Hong Kong

18.06%

0.71

25.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-10.80%

EBIT Growth (5y)

-11.07%

EBIT to Interest (avg)

0.59

Debt to EBITDA (avg)

12.29

Net Debt to Equity (avg)

1.66

Sales to Capital Employed (avg)

140.42

Tax Ratio

10.45%

Dividend Payout Ratio

48.78%

Pledged Shares

Institutional Holding

ROCE (avg)

1,196.07%

ROE (avg)

3.46%

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

0.64

EV to EBIT

9.97

EV to EBITDA

5.84

EV to Capital Employed

0.86

EV to Sales

1.92

PEG Ratio

0.13

Dividend Yield

15.62%

ROCE (Latest)

8.68%

ROE (Latest)

8.82%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Bearish

No Trend

OBV

No Trend

Mildly 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

Not enough Data to analyse Financial Trend

Here's what is working for Virscend Education Co. Ltd.

Interest Coverage Ratio

Highest at 328.16

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debtors Turnover Ratio

Highest at 640.73% and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Net Sales

Highest at HKD 638.78 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Operating Profit

Highest at HKD 204.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (HKD MM)

Pre-Tax Profit

Highest at HKD 69.71 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Pre-Tax Profit

At HKD 69.71 MM has Grown at 61.96%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

Highest at HKD 53.05 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Net Profit

At HKD 53.05 MM has Grown at 55.11%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

EPS

Highest at HKD 0.02

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (HKD)

Raw Material Cost

Fallen by -2.22% (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 Virscend Education Co. Ltd.

Operating Cash Flow

Lowest at HKD 551.14 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)

Operating Profit Margin

Lowest at 31.95 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales