Zkteco Co., Ltd. () 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

Zkteco Co., Ltd.

Why is Zkteco Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.75% and Operating profit at -6.00% over the last 5 years

Flat results in Sep 25

DEBT-EQUITY RATIO (HY) Highest at -51.12 %
INVENTORY TURNOVER RATIO(HY) Lowest at 2.87 times
DEBTORS TURNOVER RATIO(HY) Lowest at 3.79 times

With ROE of 6.26%, it has a very attractive valuation with a 2.27 Price to Book Value

Over the past year, while the stock has generated a return of 42.41%, its profits have risen by 23.1% ; the PEG ratio of the company is 14.1

Market Beating Performance

The stock has generated a return of 42.41% in the last 1 year, much higher than market (China Shanghai Composite) returns of 16.01%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Zkteco Co., Ltd. should be less than 10%
Overall Portfolio exposure to IT - Hardware should be less than 30%

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

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

Is Zkteco Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zkteco Co., Ltd.

42.41%

1.38

61.90%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.75%

EBIT Growth (5y)

-6.00%

EBIT to Interest (avg)

66.98

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.54

Sales to Capital Employed (avg)

0.57

Tax Ratio

9.17%

Dividend Payout Ratio

43.89%

Pledged Shares

Institutional Holding

ROCE (avg)

11.23%

ROE (avg)

7.96%

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

2.27

EV to EBIT

34.50

EV to EBITDA

24.02

EV to Capital Employed

3.66

EV to Sales

2.95

PEG Ratio

14.12

Dividend Yield

ROCE (Latest)

10.62%

ROE (Latest)

6.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bullish

Mildly Bearish

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

OPERATING CASH FLOW(Y)

Highest at CNY 373.77 MM

RAW MATERIAL COST(Y)

Fallen by -9.59% (YoY

-5What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -51.12 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.87 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.79 times

OPERATING PROFIT(Q)

Lowest at CNY 40.72 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.63 %

Here's what is working for Zkteco Co., Ltd.

Operating Cash Flow

Highest at CNY 373.77 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -9.59% (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 Zkteco Co., Ltd.

Operating Profit

Lowest at CNY 40.72 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.63 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at -51.12 %

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 2.87 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.79 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio