Wondershare Technology Group Co., Ltd. (300624) 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

Wondershare Technology Group Co., Ltd.

Why is Wondershare Technology Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 9.87%

The company has been able to generate a Return on Capital Employed (avg) of 9.87% 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 11.01% and Operating profit at -215.26% over the last 5 years

The company has declared Negative results for the last 4 consecutive quarters

NET PROFIT(9M) At CNY -62.3 MM has Grown at -922.55%
INTEREST(HY) At CNY 1.17 MM has Grown at 115.4%
OPERATING CASH FLOW(Y) Lowest at CNY -4.32 MM

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 3.48%, its profits have fallen by -338.6%
At the current price, the company has a high dividend yield of 0

Underperformed the market in the last 1 year

The stock has generated a return of 3.48% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.17%

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 Wondershare Technology Group Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wondershare Technology Group Co., Ltd.

11.22%

0.50

58.72%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.01%

EBIT Growth (5y)

-215.26%

EBIT to Interest (avg)

-5.61

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.35

Sales to Capital Employed (avg)

1.13

Tax Ratio

1.50%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

9.87%

ROE (avg)

6.56%

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

13.14

EV to EBIT

-52.64

EV to EBITDA

-70.93

EV to Capital Employed

18.91

EV to Sales

9.17

PEG Ratio

Dividend Yield

ROCE (Latest)

-35.93%

ROE (Latest)

-21.11%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bearish

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

9What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -1.84% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY -13.82 MM

NET PROFIT(Q)

Highest at CNY -9.45 MM

EPS(Q)

Highest at CNY -0.05

-19What is not working for the Company

NET PROFIT(9M)

At CNY -62.3 MM has Grown at -922.55%

INTEREST(HY)

At CNY 1.17 MM has Grown at 115.4%

OPERATING CASH FLOW(Y)

Lowest at CNY -4.32 MM

ROCE(HY)

Lowest at -18.65%

CASH AND EQV(HY)

Lowest at CNY 1,009.75 MM

DEBT-EQUITY RATIO (HY)

Highest at -28.27 %

Here's what is working for Wondershare Technology Group Co., Ltd.

Pre-Tax Profit

Highest at CNY -13.82 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY -13.82 MM has Grown at 74.75%

over average net sales of the previous four periods of CNY -54.73 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY -9.45 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Profit

At CNY -9.45 MM has Grown at 83.16%

over average net sales of the previous four periods of CNY -56.13 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY -0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -1.84% (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 Wondershare Technology Group Co., Ltd.

Interest

At CNY 1.17 MM has Grown at 115.4%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -4.32 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 (CNY MM)

Cash and Eqv

Lowest at CNY 1,009.75 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at -28.27 %

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