Yealink Network Technology Co., Ltd. (300628) 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

Yealink Network Technology Co., Ltd.

Why is Yealink Network Technology Co., Ltd. ?

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

INTEREST COVERAGE RATIO(Q) Highest at 777,148.59
CASH AND EQV(HY) Highest at CNY 11,253.59 MM
NET SALES(Q) Highest at CNY 1,648.49 MM

With ROE of 29.58%, it has a very attractive valuation with a 5.59 Price to Book Value

Over the past year, while the stock has generated a return of -19.66%, its profits have risen by 10.8% ; the PEG ratio of the company is 1.8
At the current price, the company has a high dividend yield of 2

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Yealink Network Technology Co., Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

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

Is Yealink Network Technology Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Yealink Network Technology Co., Ltd.

-20.05%

-0.28

29.17%

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)

17.41%

EBIT Growth (5y)

15.62%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.70

Sales to Capital Employed (avg)

0.60

Tax Ratio

8.51%

Dividend Payout Ratio

90.49%

Pledged Shares

Institutional Holding

ROCE (avg)

88.23%

ROE (avg)

25.18%

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

5.59

EV to EBIT

16.89

EV to EBITDA

16.29

EV to Capital Employed

14.47

EV to Sales

7.67

PEG Ratio

1.75

Dividend Yield

1.95%

ROCE (Latest)

85.67%

ROE (Latest)

29.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

8What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 777,148.59

CASH AND EQV(HY)

Highest at CNY 11,253.59 MM

NET SALES(Q)

Highest at CNY 1,648.49 MM

PRE-TAX PROFIT(Q)

Highest at CNY 809.98 MM

NET PROFIT(Q)

Highest at CNY 728.9 MM

EPS(Q)

Highest at CNY 0.57

-8What is not working for the Company

INTEREST(HY)

At CNY 0.19 MM has Grown at 16.62%

RAW MATERIAL COST(Y)

Grown by 6.07% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.07 times

Here's what is working for Yealink Network Technology Co., Ltd.

Interest Coverage Ratio

Highest at 777,148.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at CNY 1,648.49 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Pre-Tax Profit

Highest at CNY 809.98 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 728.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.57

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Cash and Eqv

Highest at CNY 11,253.59 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Yealink Network Technology Co., Ltd.

Interest

At CNY 0.19 MM has Grown at 16.62%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Inventory Turnover Ratio

Lowest at 2.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 6.07% (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