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

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 17.35% and Operating profit at -232.88% over the last 5 years

Negative results in Sep 25

NET PROFIT(HY) At CNY -4.48 MM has Grown at -126.27%
ROCE(HY) Lowest at 0.47%
INTEREST(Q) Highest at CNY 1.48 MM

With ROE of -0.88%, it has a very expensive valuation with a 4.98 Price to Book Value

Over the past year, while the stock has generated a return of -4.91%, its profits have fallen by -313.5%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.91% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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, Low Return

Absolute

Risk Adjusted

Volatility

ZW Soft Co., Ltd.

-20.69%

0.29

54.13%

China Shanghai Composite

16.67%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.35%

EBIT Growth (5y)

-232.88%

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)

0.31

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

4.98

EV to EBIT

-56.79

EV to EBITDA

-92.54

EV to Capital Employed

14.11

EV to Sales

12.18

PEG Ratio

Dividend Yield

ROCE (Latest)

-24.85%

ROE (Latest)

-0.88%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 158.45 MM

PRE-TAX PROFIT(Q)

At CNY 14.21 MM has Grown at 362.15%

NET PROFIT(Q)

At CNY 13.39 MM has Grown at 683%

RAW MATERIAL COST(Y)

Fallen by -10.25% (YoY

-21What is not working for the Company

NET PROFIT(HY)

At CNY -4.48 MM has Grown at -126.27%

ROCE(HY)

Lowest at 0.47%

INTEREST(Q)

Highest at CNY 1.48 MM

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

Pre-Tax Profit

At CNY 14.21 MM has Grown at 362.15%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 13.39 MM has Grown at 683%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Operating Cash Flow

Highest at CNY 158.45 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 (CNY MM)

Raw Material Cost

Fallen by -10.25% (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.

Interest

At CNY 1.48 MM has Grown at 32.63%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest

Highest at CNY 1.48 MM

in the last five periods and Increased by 32.63% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)