YGM Trading Ltd. (375) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Virtual Mind Holding Co. Ltd.

C.banner International Holdings Ltd.

State Energy Group International Assets Holdings Ltd.

YGM Trading Ltd.

China Outfitters Holdings Ltd.

Win Hanverky Holdings Ltd.

Bauhaus International (Holdings) Ltd.

Embry Holdings Ltd.

Crocodile Garments Ltd.

Yangtzekiang Garment Ltd.

China Smarter Energy Group Holdings Ltd.

Why is YGM Trading Ltd. ?

Weak Long Term Fundamental Strength with a -8.00% CAGR growth in Net Sales over the last 5 years

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -10.47
The company has reported losses and also has negative networth. This is not a good sign for the investors. Either company will have to raise fresh capital or report profits to sustain going forward

Flat results in Mar 25

ROCE(HY) Lowest at -5.47%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
CASH AND EQV(HY) Lowest at HKD 101.63 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 -4.12%, its profits have risen by 64.9%

Below par performance in long term as well as near term

Along with generating -4.12% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong 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 Footwear)

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

Is YGM Trading Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

YGM Trading Ltd.

1.09%

0.02

69.11%

Hang Seng Hong Kong

27.36%

1.03

25.88%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-8.00%

EBIT Growth (5y)

13.79%

EBIT to Interest (avg)

-10.47

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.20

Sales to Capital Employed (avg)

0.43

Tax Ratio

37.80%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

ROE (avg)

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

0.41

EV to EBIT

-9.78

EV to EBITDA

3.95

EV to Capital Employed

0.27

EV to Sales

0.50

PEG Ratio

Dividend Yield

0.49%

ROCE (Latest)

-2.73%

ROE (Latest)

-0.51%

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

Mildly Bearish

Mildly Bullish

Dow Theory

Bearish

No Trend

OBV

No Trend

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

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at HKD 82.2 MM

NET PROFIT(HY)

Higher at HKD 0.84 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,330.23

RAW MATERIAL COST(Y)

Fallen by -4.57% (YoY

OPERATING PROFIT MARGIN(Q)

Highest at 15.22 %

-8What is not working for the Company

ROCE(HY)

Lowest at -5.47%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

CASH AND EQV(HY)

Lowest at HKD 101.63 MM

NET SALES(Q)

Fallen at -32.26%

PRE-TAX PROFIT(Q)

Fallen at -61.62%

NET PROFIT(Q)

Fallen at -63.03%

EPS(Q)

Lowest at HKD -0.13

Here's what is working for YGM Trading Ltd.

Operating Cash Flow

Highest at HKD 82.2 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Interest Coverage Ratio

Highest at 1,330.23

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit Margin

Highest at 15.22 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Raw Material Cost

Fallen by -4.57% (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 YGM Trading Ltd.

Net Sales

Fallen at -32.26%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (HKD MM)

Pre-Tax Profit

Fallen at -61.62%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (HKD MM)

Net Profit

Fallen at -63.03%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (HKD MM)

EPS

Lowest at HKD -0.13

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (HKD)

Cash and Eqv

Lowest at HKD 101.63 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)