Wintao Communications 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

Wintao Communications Co., Ltd.

Why is Wintao Communications Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -5.26% and Operating profit at -28.86% over the last 5 years

The company has declared Negative results for the last 13 consecutive quarters

INTEREST COVERAGE RATIO(Q) Lowest at 143.69
PRE-TAX PROFIT(Q) At CNY 3.43 MM has Fallen at -73.34%
NET PROFIT(Q) At CNY 0.79 MM has Fallen at -92.6%

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 -86.02%, its profits have fallen by -103.1%

Below par performance in long term as well as near term

Along with generating -86.02% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Computers - Software & Consulting)

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

Is Wintao Communications Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wintao Communications Co., Ltd.

-79.56%

-0.91

90.00%

China Shanghai Composite

8.25%

1.20

14.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.26%

EBIT Growth (5y)

-28.86%

EBIT to Interest (avg)

13.42

Debt to EBITDA (avg)

1.48

Net Debt to Equity (avg)

0.20

Sales to Capital Employed (avg)

0.57

Tax Ratio

65.78%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

6.78%

ROE (avg)

7.13%

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

0.27

EV to EBIT

29.30

EV to EBITDA

8.93

EV to Capital Employed

0.39

EV to Sales

0.64

PEG Ratio

Dividend Yield

ROCE (Latest)

1.34%

ROE (Latest)

-0.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 179.01 MM

NET SALES(HY)

At CNY 804.23 MM has Grown at 66.07%

DEBTORS TURNOVER RATIO(HY)

Highest at 1.26 times

-28What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 143.69

PRE-TAX PROFIT(Q)

At CNY 3.43 MM has Fallen at -73.34%

NET PROFIT(Q)

At CNY 0.79 MM has Fallen at -92.6%

INTEREST(9M)

At CNY 20.99 MM has Grown at 6.88%

ROCE(HY)

Lowest at -0.05%

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.92 times

OPERATING PROFIT(Q)

Lowest at CNY 6.96 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.93 %

RAW MATERIAL COST(Y)

Grown by 38.97% (YoY

Here's what is working for Wintao Communications Co., Ltd.

Net Sales

At CNY 804.23 MM has Grown at 66.07%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very positive

Net Sales (CNY MM)

Operating Cash Flow

Highest at CNY 179.01 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Debtors Turnover Ratio

Highest at 1.26 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Wintao Communications Co., Ltd.

Interest Coverage Ratio

Lowest at 143.69 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 3.43 MM has Fallen at -73.34%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 0.79 MM has Fallen at -92.6%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 6.96 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.93 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 1.92 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest

At CNY 20.99 MM has Grown at 6.88%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Raw Material Cost

Grown by 38.97% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales