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. ?

Poor long term growth as Net Sales has grown by an annual rate of 17.06% and Operating profit at 16.63% over the last 5 years

Flat results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CNY 1,801.12 MM
DEBT-EQUITY RATIO (HY) Highest at -61.83 %
INVENTORY TURNOVER RATIO(HY) Lowest at 1.79 times

With ROE of 26.95%, it has a fair valuation with a 2.56 Price to Book Value

Over the past year, while the stock has generated a return of -3.74%, its profits have risen by 1.9% ; the PEG ratio of the company is 5.1
At the current price, the company has a high dividend yield of 5.1

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Below par performance in long term as well as near term

Along with generating -3.74% 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 hold?

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.

-3.02%

-0.24

31.71%

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)

17.06%

EBIT Growth (5y)

16.63%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.70

Sales to Capital Employed (avg)

0.61

Tax Ratio

8.51%

Dividend Payout Ratio

87.49%

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

2.56

EV to EBIT

7.02

EV to EBITDA

6.86

EV to Capital Employed

5.10

EV to Sales

3.10

PEG Ratio

5.08

Dividend Yield

5.07%

ROCE (Latest)

72.70%

ROE (Latest)

26.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

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

3What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 872,727.26

RAW MATERIAL COST(Y)

Fallen by -2.93% (YoY

-5What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 1,801.12 MM

DEBT-EQUITY RATIO (HY)

Highest at -61.83 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.79 times

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

Interest Coverage Ratio

Highest at 872,727.26

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Raw Material Cost

Fallen by -2.93% (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 Yealink Network Technology Co., Ltd.

Operating Cash Flow

Lowest at CNY 1,801.12 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Debt-Equity Ratio

Highest at -61.83 %

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

Inventory Turnover Ratio

Lowest at 1.79 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio