ZW Soft 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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

ZW Soft Co., Ltd.

Why is ZW Soft Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.27%

The company has been able to generate a Return on Capital Employed (avg) of 3.27% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of 21.86% and Operating profit at -241.54% over the last 5 years

Negative results in Mar 25

DEBT-EQUITY RATIO (HY) Highest at -70.12 %
OPERATING PROFIT(Q) Lowest at CNY -103.44 MM
OPERATING PROFIT MARGIN(Q) Lowest at -83.6 %

With ROE of -0.88%, it has a very expensive valuation with a 4.66 Price to Book Value

Over the past year, while the stock has generated a return of 3.39%, its profits have fallen by -313.5%

Underperformed the market in the last 1 year

The stock has generated a return of 3.39% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.14%

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 Computers - Software & Consulting)

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

Is ZW Soft Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

ZW Soft Co., Ltd.

3.42%

0.53

55.45%

China Shanghai Composite

14.61%

1.04

14.52%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.86%

EBIT Growth (5y)

-241.54%

EBIT to Interest (avg)

-45.30

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

-0.71

Sales to Capital Employed (avg)

0.30

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

67.40%

Pledged Shares

Institutional Holding

ROCE (avg)

3.27%

ROE (avg)

1.45%

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

4.66

EV to EBIT

-52.51

EV to EBITDA

-85.58

EV to Capital Employed

13.05

EV to Sales

11.26

PEG Ratio

Dividend Yield

ROCE (Latest)

-24.85%

ROE (Latest)

-0.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -16.41% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 6.19%

-16What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -70.12 %

OPERATING PROFIT(Q)

Lowest at CNY -103.44 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -83.6 %

PRE-TAX PROFIT(Q)

Lowest at CNY -64.63 MM

NET PROFIT(Q)

Fallen at -26.02%

EPS(Q)

Lowest at CNY -0.28

Here's what is working for ZW Soft Co., Ltd.

Debtors Turnover Ratio

Highest at 6.19%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -16.41% (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 ZW Soft Co., Ltd.

Debt-Equity Ratio

Highest at -70.12 % and Grown

In each half year 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

Operating Profit

Lowest at CNY -103.44 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -83.6 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -64.63 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY -53.22 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -26.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.28

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)