ScoreWhy is Zkteco Co., Ltd. ?
1
Poor long term growth as Net Sales has grown by an annual rate of 2.56% and Operating profit at 3.66% over the last 5 years
- INTEREST(HY) At CNY 2.15 MM has Grown at 18.37%
- INTEREST COVERAGE RATIO(Q) Lowest at 4,442.63
- DEBT-EQUITY RATIO (HY) Highest at -46.18 %
2
With ROE of 6.30%, it has a attractive valuation with a 1.52 Price to Book Value
- Over the past year, while the stock has generated a return of -1.38%, its profits have risen by 13.7%
3
Below par performance in long term as well as near term
- Along with generating -1.38% 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 ReportHow 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.
-25.98%
0.76
54.91%
China Shanghai Composite
0.9%
1.20
14.07%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
2.56%
EBIT Growth (5y)
3.66%
EBIT to Interest (avg)
84.52
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.54
Sales to Capital Employed (avg)
0.56
Tax Ratio
10.45%
Dividend Payout Ratio
52.25%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
12.58%
ROE (avg)
7.96%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
27
Industry P/E
Price to Book Value
1.68
EV to EBIT
17.89
EV to EBITDA
14.32
EV to Capital Employed
2.28
EV to Sales
1.94
PEG Ratio
NA
Dividend Yield
1.60%
ROCE (Latest)
12.74%
ROE (Latest)
6.30%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Mildly Bullish
Bullish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bearish
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
NET SALES(Q)
At CNY 647.53 MM has Grown at 25.59%
-19What is not working for the Company
INTEREST(HY)
At CNY 1.7 MM has Grown at 28.6%
NET PROFIT(Q)
At CNY 25.62 MM has Fallen at -57.11%
DEBT-EQUITY RATIO
(HY)
Highest at -41.13 %
INVENTORY TURNOVER RATIO(HY)
Lowest at 2.41 times
PRE-TAX PROFIT(Q)
Fallen at -28.97%
Here's what is working for Zkteco Co., Ltd.
Net Sales
At CNY 647.53 MM has Grown at 25.59%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Here's what is not working for Zkteco Co., Ltd.
Interest
At CNY 1.7 MM has Grown at 28.6%
over previous Semi-Annual periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (CNY MM)
Net Profit
At CNY 25.62 MM has Fallen at -57.11%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (CNY MM)
Pre-Tax Profit
Fallen at -28.97%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (CNY MM)
Debt-Equity Ratio
Highest at -41.13 %
in the last five Semi-Annual periodsMOJO 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 2.41 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling inventory has slowed
Inventory Turnover Ratio
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