ONECONNECT FINANCIAL TECHNO (OCFT)

US68248T2042 - ADR

2.87  +0.48 (+20.08%)

After market: 2.78 -0.09 (-3.14%)

Fundamental Rating

2

Taking everything into account, OCFT scores 2 out of 10 in our fundamental rating. OCFT was compared to 279 industry peers in the Software industry. OCFT has a bad profitability rating. Also its financial health evaluation is rather negative. OCFT is valied quite expensively at the moment, while it does show a decent growth rate.



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2

1. Profitability

1.1 Basic Checks

In the past year OCFT has reported negative net income.
In the past year OCFT has reported a negative cash flow from operations.
OCFT had negative earnings in each of the past 5 years.
In the past 5 years OCFT always reported negative operating cash flow.

1.2 Ratios

OCFT's Return On Assets of 0.35% is fine compared to the rest of the industry. OCFT outperforms 63.31% of its industry peers.
The Return On Equity of OCFT (0.95%) is better than 64.75% of its industry peers.
Industry RankSector Rank
ROA 0.35%
ROE 0.95%
ROIC N/A
ROA(3y)-9.35%
ROA(5y)-11.44%
ROE(3y)-24.17%
ROE(5y)-27.31%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

OCFT has a Profit Margin of 1.02%. This is in the better half of the industry: OCFT outperforms 64.75% of its industry peers.
OCFT's Gross Margin of 37.01% is on the low side compared to the rest of the industry. OCFT is outperformed by 77.70% of its industry peers.
In the last couple of years the Gross Margin of OCFT has grown nicely.
Industry RankSector Rank
OM N/A
PM (TTM) 1.02%
GM 37.01%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.67%
GM growth 5Y6%

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2

2. Health

2.1 Basic Checks

OCFT does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, OCFT has about the same amount of shares outstanding.
The number of shares outstanding for OCFT has been increased compared to 5 years ago.
OCFT has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.90, we must say that OCFT is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.90, OCFT is not doing good in the industry: 66.55% of the companies in the same industry are doing better.
OCFT has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
OCFT has a Debt to Equity ratio (0.09) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF N/A
Altman-Z 0.9
ROIC/WACCN/A
WACC9.59%

2.3 Liquidity

OCFT has a Current Ratio of 1.06. This is a normal value and indicates that OCFT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.06, OCFT is doing worse than 75.54% of the companies in the same industry.
OCFT has a Quick Ratio of 1.06. This is a normal value and indicates that OCFT is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.06, OCFT is doing worse than 75.18% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 1.06

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 54.61% over the past year.
OCFT shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -30.81%.
The Revenue has been growing by 21.01% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)54.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.15%
Revenue 1Y (TTM)-30.81%
Revenue growth 3Y3.45%
Revenue growth 5Y21.01%
Sales Q2Q%-50.56%

3.2 Future

Based on estimates for the next years, OCFT will show a very strong growth in Earnings Per Share. The EPS will grow by 32.33% on average per year.
The Revenue is expected to decrease by -6.24% on average over the next years.
EPS Next Y73.01%
EPS Next 2Y36.82%
EPS Next 3Y32.33%
EPS Next 5YN/A
Revenue Next Year-19.89%
Revenue Next 2Y-11.54%
Revenue Next 3Y-6.24%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for OCFT. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for OCFT. 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 -780.06

4.3 Compensation for Growth

OCFT's earnings are expected to grow with 32.33% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y36.82%
EPS Next 3Y32.33%

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0

5. Dividend

5.1 Amount

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

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ONECONNECT FINANCIAL TECHNO

NYSE:OCFT (12/20/2024, 8:04:00 PM)

After market: 2.78 -0.09 (-3.14%)

2.87

+0.48 (+20.08%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)08-14 2024-08-14/bmo
Earnings (Next)N/A N/A
Inst Owners3.9%
Inst Owner Change-4.71%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap111.93M
Analysts48.57
Price Target2.31 (-19.51%)
Short Float %0.14%
Short Ratio0.9
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.3
P/FCF N/A
P/OCF N/A
P/B 0.28
P/tB 0.33
EV/EBITDA -780.06
EPS(TTM)-1.37
EYN/A
EPS(NY)-0.18
Fwd EYN/A
FCF(TTM)-0.56
FCFYN/A
OCF(TTM)-0.56
OCFYN/A
SpS9.69
BVpS10.42
TBVpS8.77
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.35%
ROE 0.95%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 1.02%
GM 37.01%
FCFM N/A
ROA(3y)-9.35%
ROA(5y)-11.44%
ROE(3y)-24.17%
ROE(5y)-27.31%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.67%
GM growth 5Y6%
F-Score3
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 0.09
Debt/FCF N/A
Debt/EBITDA 51.86
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.06
Quick Ratio 1.06
Altman-Z 0.9
F-Score3
WACC9.59%
ROIC/WACCN/A
Cap/Depr(3y)23.97%
Cap/Depr(5y)40.65%
Cap/Sales(3y)1.88%
Cap/Sales(5y)5.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)54.61%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.15%
EPS Next Y73.01%
EPS Next 2Y36.82%
EPS Next 3Y32.33%
EPS Next 5YN/A
Revenue 1Y (TTM)-30.81%
Revenue growth 3Y3.45%
Revenue growth 5Y21.01%
Sales Q2Q%-50.56%
Revenue Next Year-19.89%
Revenue Next 2Y-11.54%
Revenue Next 3Y-6.24%
Revenue Next 5YN/A
EBIT growth 1Y53.56%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year71.78%
EBIT Next 3Y31.28%
EBIT Next 5YN/A
FCF growth 1Y63.23%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y63.23%
OCF growth 3YN/A
OCF growth 5YN/A