WELLCHANGE HOLDINGS CO LTD (WCT)
KYG9545M1151 - Common Stock
WCT gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. Both the profitability and the financial health of WCT get a neutral evaluation. Nothing too spectacular is happening here. WCT has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
WCT had positive earnings in the past year.
WCT had a positive operating cash flow in the past year.
1.2 Ratios
With an excellent Return On Assets value of 31.48%, WCT belongs to the best of the industry, outperforming 99.28% of the companies in the same industry.
WCT's Return On Equity of 61.33% is amongst the best of the industry. WCT outperforms 97.13% of its industry peers.
WCT's Return On Invested Capital of 38.59% is amongst the best of the industry. WCT outperforms 98.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.48% | ||
| ROE | 61.33% | ||
| ROIC | 38.59% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WCT has a Profit Margin of 46.71%. This is amongst the best in the industry. WCT outperforms 97.49% of its industry peers.
Looking at the Operating Margin, with a value of 56.19%, WCT belongs to the top of the industry, outperforming 99.64% of the companies in the same industry.
The Gross Margin of WCT (78.88%) is better than 76.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 56.19% | ||
| PM (TTM) | 46.71% | ||
| GM | 78.88% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WCT is creating value.
The number of shares outstanding for WCT remains at a similar level compared to 1 year ago.
Compared to 1 year ago, WCT has an improved debt to assets ratio.
2.2 Solvency
WCT has an Altman-Z score of 13.11. This indicates that WCT is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 13.11, WCT belongs to the best of the industry, outperforming 87.10% of the companies in the same industry.
WCT has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as WCT would need 2.05 years to pay back of all of its debts.
WCT's Debt to FCF ratio of 2.05 is fine compared to the rest of the industry. WCT outperforms 65.95% of its industry peers.
A Debt/Equity ratio of 0.39 indicates that WCT is not too dependend on debt financing.
WCT has a worse Debt to Equity ratio (0.39) than 64.52% of its industry peers.
Although WCT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 13.11 |
ROIC/WACC3.26
WACC11.83%
2.3 Liquidity
WCT has a Current Ratio of 0.71. This is a bad value and indicates that WCT is not financially healthy enough and could expect problems in meeting its short term obligations.
WCT's Current ratio of 0.71 is on the low side compared to the rest of the industry. WCT is outperformed by 86.74% of its industry peers.
A Quick Ratio of 0.71 indicates that WCT may have some problems paying its short term obligations.
WCT has a Quick ratio of 0.71. This is amonst the worse of the industry: WCT underperforms 85.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 355.10% over the past year.
The Revenue has grown by 148.82% in the past year. This is a very strong growth!
EPS 1Y (TTM)355.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%833.05%
Revenue 1Y (TTM)148.82%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%201.95%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.25, which means the current valuation is very expensive for WCT.
WCT's Price/Earnings ratio is a bit cheaper when compared to the industry. WCT is cheaper than 77.42% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.54. WCT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | N/A |
4.2 Price Multiples
WCT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. WCT is cheaper than 83.51% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as WCT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 88.92 | ||
| EV/EBITDA | 19.43 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for WCT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WELLCHANGE HOLDINGS CO LTD
NASDAQ:WCT (12/24/2024, 4:59:51 PM)
Premarket: 0.97 -0.04 (-3.96%)1.01
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap21.48M
AnalystsN/A
Price TargetN/A
Short Float %7.8%
Short Ratio0.15
Dividend
| Industry Rank | Sector 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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | N/A | ||
| P/S | 12.86 | ||
| P/FCF | 88.92 | ||
| P/OCF | 13.81 | ||
| P/B | 16.88 | ||
| P/tB | 162.23 | ||
| EV/EBITDA | 19.43 |
EPS(TTM)0.04
EY3.96%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.01
FCFY1.12%
OCF(TTM)0.07
OCFY7.24%
SpS0.08
BVpS0.06
TBVpS0.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.48% | ||
| ROE | 61.33% | ||
| ROCE | 63.35% | ||
| ROIC | 38.59% | ||
| ROICexc | 41.59% | ||
| ROICexgc | 109.95% | ||
| OM | 56.19% | ||
| PM (TTM) | 46.71% | ||
| GM | 78.88% | ||
| FCFM | 14.46% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
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 3YN/A
GM growth 5YN/A
F-ScoreN/A
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 824.79% | ||
| Cap/Sales | 78.6% | ||
| Interest Coverage | 60 | ||
| Cash Conversion | 141.61% | ||
| Profit Quality | 30.95% | ||
| Current Ratio | 0.71 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z | 13.11 |
F-ScoreN/A
WACC11.83%
ROIC/WACC3.26
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)355.1%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%833.05%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)148.82%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%201.95%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y316.33%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-146.42%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y191.81%
OCF growth 3YN/A
OCF growth 5YN/A