XDC Industries (Shenzhen) Ltd. (300615) 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

XDC Industries (Shenzhen) Ltd.

Why is XDC Industries (Shenzhen) Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 17.39% and Operating profit at -276.24% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.46% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 17.39% and Operating profit at -276.24% over the last 5 years

With a fall in Operating Profit of -914.86%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 2 consecutive quarters
The company has declared negative results in Dec 25 after 3 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at CNY -1.76 MM
ROCE(HY) Lowest at -7.73%
DEBT-EQUITY RATIO (HY) Highest at 14.89 %

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 -15.96%, its profits have fallen by -347.5%
At the current price, the company has a high dividend yield of 0.5

Below par performance in long term as well as near term

Along with generating -15.96% 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 Electronics & Appliances)

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

Is XDC Industries (Shenzhen) Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

XDC Industries (Shenzhen) Ltd.

-17.22%

0.51

37.50%

China Shanghai Composite

19.22%

1.46

13.80%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.39%

EBIT Growth (5y)

-276.24%

EBIT to Interest (avg)

9.55

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.23

Sales to Capital Employed (avg)

0.69

Tax Ratio

2.75%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.62%

ROE (avg)

4.46%

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

1.19

EV to EBIT

-13.88

EV to EBITDA

-27.23

EV to Capital Employed

1.17

EV to Sales

1.15

PEG Ratio

Dividend Yield

0.45%

ROCE (Latest)

-8.44%

ROE (Latest)

-14.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

RAW MATERIAL COST(Y)

Fallen by -53.28% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 4.57 times

DEBTORS TURNOVER RATIO(HY)

Highest at 2.4 times

NET SALES(Q)

At CNY 142.62 MM has Grown at 20.44%

-41What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -1.76 MM

ROCE(HY)

Lowest at -7.73%

DEBT-EQUITY RATIO (HY)

Highest at 14.89 %

CASH AND EQV(HY)

Lowest at CNY 310.18 MM

INTEREST(Q)

Highest at CNY 1.05 MM

OPERATING PROFIT(Q)

Lowest at CNY -38.63 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -27.09 %

PRE-TAX PROFIT(Q)

Lowest at CNY -40.79 MM

NET PROFIT(Q)

Lowest at CNY -33.72 MM

EPS(Q)

Lowest at CNY -0.17

Here's what is working for XDC Industries (Shenzhen) Ltd.

Net Sales

At CNY 142.62 MM has Grown at 20.44%

over average net sales of the previous four periods of CNY 118.41 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Inventory Turnover Ratio

Highest at 4.57 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 2.4 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 -53.28% (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 XDC Industries (Shenzhen) Ltd.

Pre-Tax Profit

At CNY -40.79 MM has Fallen at -2,365.49%

over average net sales of the previous four periods of CNY -1.65 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -33.72 MM has Fallen at -1,361.88%

over average net sales of the previous four periods of CNY -2.31 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY -1.76 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)

Interest

At CNY 1.05 MM has Grown at 74.93%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debt-Equity Ratio

Highest at 14.89 % 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 1.05 MM

in the last five periods and Increased by 74.93% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY -38.63 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -27.09 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -40.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -33.72 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.17

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Cash and Eqv

Lowest at CNY 310.18 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents