WCON Electronics (Guangdong) 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

WCON Electronics (Guangdong) Co., Ltd.

Why is WCON Electronics (Guangdong) Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 15.90% and Operating profit at -0.55% over the last 5 years

Flat results in Mar 26

ROCE(HY) Lowest at 4.68%
DEBT-EQUITY RATIO (HY) Highest at -38.86 %
INTEREST COVERAGE RATIO(Q) Lowest at 906.2

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 Electronics & Appliances)

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

Is WCON Electronics (Guangdong) Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

WCON Electronics (Guangdong) Co., Ltd.

111.58%

0.71

54.60%

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)

15.90%

EBIT Growth (5y)

-0.55%

EBIT to Interest (avg)

90.94

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

0.30

Tax Ratio

9.72%

Dividend Payout Ratio

38.00%

Pledged Shares

Institutional Holding

ROCE (avg)

12.89%

ROE (avg)

5.84%

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

3.07

EV to EBIT

51.46

EV to EBITDA

35.08

EV to Capital Employed

4.54

EV to Sales

7.16

PEG Ratio

21.09

Dividend Yield

0.19%

ROCE (Latest)

8.82%

ROE (Latest)

5.00%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

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

6What is working for the Company

NET SALES(HY)

At CNY 371.73 MM has Grown at 26.07%

RAW MATERIAL COST(Y)

Fallen by -1.27% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 3.1 times

-18What is not working for the Company

ROCE(HY)

Lowest at 4.68%

DEBT-EQUITY RATIO (HY)

Highest at -38.86 %

INTEREST COVERAGE RATIO(Q)

Lowest at 906.2

OPERATING PROFIT MARGIN(Q)

Lowest at 12.95 %

INTEREST(Q)

Highest at CNY 2.46 MM

OPERATING PROFIT(Q)

Lowest at CNY 22.28 MM

PRE-TAX PROFIT(Q)

Fallen at -29.36%

NET PROFIT(Q)

Fallen at -29.87%

Here's what is working for WCON Electronics (Guangdong) Co., Ltd.

Net Sales

At CNY 371.73 MM has Grown at 26.07%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Debtors Turnover Ratio

Highest at 3.1 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 -1.27% (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 WCON Electronics (Guangdong) Co., Ltd.

Interest

At CNY 2.46 MM has Grown at 44.84%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 906.2

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit Margin

Lowest at 12.95 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -38.86 % 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

Interest

Highest at CNY 2.46 MM

in the last five periods and Increased by 44.84% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 22.28 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Pre-Tax Profit

Fallen at -29.36%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -29.87%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)