Weimob, Inc. (2013) 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

NetEase, Inc.

Kingsoft Corp. Ltd.

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Meitu, Inc.

SenseTime Group, Inc.

Chinasoft International Ltd.

Kingdee International Software Group Co., Ltd.

YSB, Inc.

Bilibili, Inc.

Keep, Inc. (China)

Weimob, Inc.

Why is Weimob, Inc. ?

Weak Long Term Fundamental Strength with an average Return on Equity (ROE) of 0%

Poor long term growth as Operating profit has grown by an annual rate -272.02% of over the last 5 years
Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -6.35

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 -25.70%, its profits have fallen by -3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -25.70% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

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 Software Products)

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

Is Weimob, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Weimob, Inc.

-25.7%

-0.11

55.57%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-6.92%

EBIT Growth (5y)

-272.02%

EBIT to Interest (avg)

-6.35

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.41

Tax Ratio

2.46%

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

3.59

EV to EBIT

-8.94

EV to EBITDA

-11.23

EV to Capital Employed

2.86

EV to Sales

6.27

PEG Ratio

Dividend Yield

ROCE (Latest)

-31.95%

ROE (Latest)

-46.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

14What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD -175.17 MM

ROCE(HY)

Highest at -10.56%

NET SALES(Q)

At HKD 893.86 MM has Grown at 74.64%

RAW MATERIAL COST(Y)

Fallen by -13.17% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -10.65 %

INVENTORY TURNOVER RATIO(HY)

Highest at 11.74 times

PRE-TAX PROFIT(Q)

At HKD -164.22 MM has Grown at 83.13%

NET PROFIT(Q)

At HKD -167.89 MM has Grown at 81.99%

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Weimob, Inc.

Net Sales

At HKD 893.86 MM has Grown at 74.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (HKD MM)

Operating Cash Flow

Highest at HKD -175.17 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Pre-Tax Profit

At HKD -164.22 MM has Grown at 83.13%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD -167.89 MM has Grown at 81.99%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Debt-Equity Ratio

Lowest at -10.65 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 11.74 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -13.17% (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