The company's falling revenue and EBIT loss are concerning. Its balance sheet, burdened with liabilities relative to cash, makes any debt unwise. The balance sheet isn't match-fit but could improve over time. The company's CN¥178m cash burn last year adds risk to the stock.
The declining ROCE and sales, along with increased capital employment, are concerning for TKD Science and TechnologyLtd's long-term performance. Despite the strong stock performance over the past five years, investors should be cautious unless these trends reverse.
The company's consistent ROCE and increased capital deployment without a corresponding increase in returns are not typical characteristics of multi-bagger stocks. The market does not seem optimistic about these trends improving in the near future.
Guangdong Leadyo IC Testing, despite its low ROE, has respectable earnings growth due to profit retention. However, the low ROE may not benefit investors. Its growth is lower than the industry average, a potential concern for investors.
Despite debt, the company's net cash position and liquid assets indicate a strong balance sheet. However, concerns arise from revenue shrinkage and loss before interest and tax. Mediocre revenue growth makes the investment opportunity less compelling.
Despite lower EPS, the market hasn't shown increased concern for the company. The share price change reflects the EPS reduction. Weak long-term performance usually erodes market confidence, but bargain hunters may seek signs of a turnaround.
Despite strong earnings and growth predictions, the company's P/E ratio is lower than most, indicating investor doubt and expectations of future earnings volatility.
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