Wuxi Boton Technology Co., Ltd. (300031) 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

Wuxi Boton Technology Co., Ltd.

Why is Wuxi Boton Technology Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.82%

The company has been able to generate a Return on Capital Employed (avg) of 3.82% 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 4.51% and Operating profit at -15.99% over the last 5 years

Flat results in Sep 25

NET PROFIT(9M) At CNY 224.87 MM has Grown at -20.57%
INTEREST(HY) At CNY 11.61 MM has Grown at 5.9%
INVENTORY TURNOVER RATIO(HY) Lowest at 5.41 times

With ROE of 5.67%, it has a fair valuation with a 2.61 Price to Book Value

Over the past year, while the stock has generated a return of -12.75%, its profits have fallen by -34.3%
At the current price, the company has a high dividend yield of 0.4

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 24.70% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -12.75% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Wuxi Boton Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

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

Is Wuxi Boton Technology Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Wuxi Boton Technology Co., Ltd.

-12.75%

2.31

33.66%

China Shanghai Composite

24.7%

1.91

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.51%

EBIT Growth (5y)

-15.99%

EBIT to Interest (avg)

6.70

Debt to EBITDA (avg)

0.67

Net Debt to Equity (avg)

-0.02

Sales to Capital Employed (avg)

0.72

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

19.71%

Pledged Shares

Institutional Holding

ROCE (avg)

3.82%

ROE (avg)

6.08%

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

2.61

EV to EBIT

66.66

EV to EBITDA

34.62

EV to Capital Employed

2.72

EV to Sales

3.20

PEG Ratio

Dividend Yield

0.40%

ROCE (Latest)

4.08%

ROE (Latest)

5.67%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -9.99% (YoY

CASH AND EQV(HY)

Highest at CNY 2,650.96 MM

-7What is not working for the Company

NET PROFIT(9M)

At CNY 224.87 MM has Grown at -20.57%

INTEREST(HY)

At CNY 11.61 MM has Grown at 5.9%

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.41 times

Here's what is working for Wuxi Boton Technology Co., Ltd.

Cash and Eqv

Highest at CNY 2,650.96 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -9.99% (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 Wuxi Boton Technology Co., Ltd.

Interest

At CNY 11.61 MM has Grown at 5.9%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Net Profit

At CNY 224.87 MM has Grown at -20.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 5.41 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio