RECON TECHNOLOGY LTD-CLASS A (RCON)

KYG7415M1327 - Common Stock

2.27  +0.05 (+2.25%)

After market: 2.34 +0.07 (+3.08%)

Fundamental Rating

2

Taking everything into account, RCON scores 2 out of 10 in our fundamental rating. RCON was compared to 60 industry peers in the Energy Equipment & Services industry. While RCON seems to be doing ok healthwise, there are quite some concerns on its profitability. While showing a medium growth rate, RCON is valued expensive at the moment.



1

1. Profitability

1.1 Basic Checks

RCON had negative earnings in the past year.
RCON had a negative operating cash flow in the past year.
RCON had negative earnings in 4 of the past 5 years.
In the past 5 years RCON always reported negative operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of -11.13%, RCON is doing worse than 86.44% of the companies in the same industry.
RCON has a worse Return On Equity (-13.17%) than 79.66% of its industry peers.
Industry RankSector Rank
ROA -11.13%
ROE -13.17%
ROIC N/A
ROA(3y)1.45%
ROA(5y)-4.34%
ROE(3y)0.61%
ROE(5y)-8.44%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

RCON has a Gross Margin of 28.11%. This is comparable to the rest of the industry: RCON outperforms 59.32% of its industry peers.
In the last couple of years the Gross Margin of RCON has grown nicely.
The Profit Margin and Operating Margin are not available for RCON so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 28.11%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.94%
GM growth 5Y41.83%

4

2. Health

2.1 Basic Checks

RCON does not have a ROIC to compare to the WACC, probably because it is not profitable.
RCON has more shares outstanding than it did 1 year ago.
The number of shares outstanding for RCON has been increased compared to 5 years ago.
Compared to 1 year ago, RCON has a worse debt to assets ratio.

2.2 Solvency

RCON has an Altman-Z score of 1.22. This is a bad value and indicates that RCON is not financially healthy and even has some risk of bankruptcy.
RCON's Altman-Z score of 1.22 is on the low side compared to the rest of the industry. RCON is outperformed by 67.80% of its industry peers.
RCON has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
RCON's Debt to Equity ratio of 0.07 is amongst the best of the industry. RCON outperforms 83.05% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF N/A
Altman-Z 1.22
ROIC/WACCN/A
WACC6.78%

2.3 Liquidity

A Current Ratio of 8.26 indicates that RCON has no problem at all paying its short term obligations.
RCON has a better Current ratio (8.26) than 100.00% of its industry peers.
RCON has a Quick Ratio of 8.16. This indicates that RCON is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 8.16, RCON belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 8.26
Quick Ratio 8.16

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 87.97% over the past year.
RCON shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.89%.
RCON shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.55% yearly.
EPS 1Y (TTM)87.97%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%92.78%
Revenue 1Y (TTM)-19.89%
Revenue growth 3Y0.68%
Revenue growth 5Y-4.55%
Sales Q2Q%-86.27%

3.2 Future

Based on estimates for the next years, RCON will show a very strong growth in Earnings Per Share. The EPS will grow by 41.36% on average per year.
The Revenue is expected to grow by 13.08% on average over the next years. This is quite good.
EPS Next Y97.86%
EPS Next 2Y41.36%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-13.2%
Revenue Next 2Y13.08%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

1

4. Valuation

4.1 Price/Earnings Ratio

RCON reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for RCON. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

4.3 Compensation for Growth

A more expensive valuation may be justified as RCON's earnings are expected to grow with 41.36% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y41.36%
EPS Next 3YN/A

0

5. Dividend

5.1 Amount

RCON does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

RECON TECHNOLOGY LTD-CLASS A

NASDAQ:RCON (10/31/2024, 6:30:04 PM)

After market: 2.34 +0.07 (+3.08%)

2.27

+0.05 (+2.25%)

Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryEnergy Equipment & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap18.89M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -11.13%
ROE -13.17%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 28.11%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.13
Health
Industry RankSector Rank
Debt/Equity 0.07
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 8.26
Quick Ratio 8.16
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)87.97%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y97.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-19.89%
Revenue growth 3Y0.68%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y