Ratings Neusoft Corporation

Equities

600718

CNE000000KJ6

End-of-day quote Shanghai S.E. Other stock markets 03:30:00 09/05/2024 am IST			5-day change	1st Jan Change
8.32 ^CNY	+1.22%		-1.54%	-10.05%

08/05	Neusoft Corporation and ACCESS Europe GmbH Sign Global MoU to Supply Global In-Vehicle Intelligent Mobility Solutions to Automotive OEMs	CI
02/05	Neusoft Xikang's Loss Narrows in 2023 Despite Revenue Drop	MT

Summary

Overall, the company has poor fundamentals for a medium to long-term investment strategy.
From a short-term investment perspective, the company presents a deteriorated fundamental configuration.

Strengths

The prospective high growth for the next fiscal years is among the main assets of the company
The earnings growth currently anticipated by analysts for the coming years is particularly strong.
The company's share price in relation to its net book value makes it look relatively cheap.
Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.

Weaknesses

The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
The company sustains low margins.
The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 34.67 times its estimated earnings per share for the ongoing year.
The company is not the most generous with respect to shareholders' compensation.
For the last four months, the sales outlook for the coming years has been revised downwards. No recovery of the group's activities is yet foreseen.
For the last 12 months, analysts have been regularly downgrading their EPS expectations. Analysts predict worse results for the company against their predictions a year ago.
For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
The average price target of analysts who are interested in the stock has been significantly revised downwards over the last four months.
Over the past twelve months, analysts' consensus has been significantly revised downwards.
Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
The company's earnings releases usually do not meet expectations.

Ratings chart - Surperformance

Chart ESG Refinitiv

Sector: Software

	1st Jan change	Capi.	ESG Refinitiv
NEUSOFT CORPORATION	-10.05%	1.36B	C+
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SYNOPSYS INC.	+6.79%	83.97B	B
CADENCE DESIGN SYSTEMS, INC.	+4.74%	76.9B	B+
DASSAULT SYSTÈMES SE	-13.91%	54B	B+
PALANTIR TECHNOLOGIES INC.	+23.12%	48.01B	D+
ATLASSIAN CORPORATION	-24.39%	46.47B	B-
THE TRADE DESK, INC.	+23.22%	42.04B	D+
SEA LIMITED	+62.94%	38.34B	D+
ROBLOX CORPORATION	-33.46%	24.97B	-

Investor Rating

Trading Rating

ESG Refinitiv

Financials

Sales growth

Earnings Growth

EBITDA / Sales

Profitability

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1 year Revenue revision

4 months Revenue revision

7 days Revenue revision

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4 months EPS revision

Consensus

Analyst Opinion

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4m Target Price Revision

4m Revision of opinion

12m Revision of opinion

Business Predictability

Analyst Coverage

Divergence of Estimates

Divergence of analysts' opinions

Divergence of Target Price

Earnings quality

Environment

Emissions

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Use of resources

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CSR Strategy

Management

Shareholders

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Technical analysis

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Unusual volumes