OneConnect Financial Technology Co Ltd (OCFT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OCFT - US68248T2042 - ADR
7.89 USD
+0.01 (+0.13%)
7.89 USD
0 (0%)
We assign a fundamental rating of 2 out of 10 to OCFT. OCFT was compared to 277 industry peers in the Software industry. OCFT scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. OCFT does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
- In the past year OCFT has reported negative net income.
- OCFT had a negative operating cash flow in the past year.
- OCFT had negative earnings in each of the past 5 years.
- OCFT had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of -18.17%, OCFT is doing worse than 69.82% of the companies in the same industry.
- OCFT has a worse Return On Equity (-27.42%) than 60.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -18.17% | ||
| ROE | -27.42% | ||
| ROIC | N/A |
ROA(3y)-8.63%
ROA(5y)-10.41%
ROE(3y)-18.89%
ROE(5y)-23.3%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- Looking at the Gross Margin, with a value of 29.87%, OCFT is doing worse than 77.54% of the companies in the same industry.
- In the last couple of years the Gross Margin of OCFT has grown nicely.
- OCFT does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 29.87% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.97%
GM growth 5Y1.67%
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.
- Compared to 5 years ago, OCFT has more shares outstanding
- OCFT has a better debt/assets ratio than last year.
2.2 Solvency
- OCFT has an Altman-Z score of 2.76. This is not the best score and indicates that OCFT is in the grey zone with still only limited risk for bankruptcy at the moment.
- OCFT's Altman-Z score of 2.76 is in line compared to the rest of the industry. OCFT outperforms 56.49% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that OCFT is not too dependend on debt financing.
- OCFT has a better Debt to Equity ratio (0.01) than 63.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.76 |
ROIC/WACCN/A
WACC9.54%
2.3 Liquidity
- A Current Ratio of 2.44 indicates that OCFT has no problem at all paying its short term obligations.
- OCFT's Current ratio of 2.44 is fine compared to the rest of the industry. OCFT outperforms 70.18% of its industry peers.
- OCFT has a Quick Ratio of 2.44. This indicates that OCFT is financially healthy and has no problem in meeting its short term obligations.
- OCFT's Quick ratio of 2.44 is fine compared to the rest of the industry. OCFT outperforms 70.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 2.44 |
3. Growth
3.1 Past
- The earnings per share for OCFT have decreased strongly by -1453.50% in the last year.
- Looking at the last year, OCFT shows a very negative growth in Revenue. The Revenue has decreased by -48.70% in the last year.
- The Revenue has been decreasing by -0.69% on average over the past years.
EPS 1Y (TTM)-1453.5%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-116.68%
Revenue 1Y (TTM)-48.7%
Revenue growth 3Y-18.37%
Revenue growth 5Y-0.69%
Sales Q2Q%-37.42%
3.2 Future
- OCFT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.42% yearly.
- Based on estimates for the next years, OCFT will show a very negative growth in Revenue. The Revenue will decrease by -11.05% on average per year.
EPS Next Y-187.69%
EPS Next 2Y9.42%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-25.62%
Revenue Next 2Y-11.05%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- OCFT reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- OCFT is valuated quite expensively with a Price/Forward Earnings ratio of 32.17.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of OCFT is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of OCFT to the average of the S&P500 Index (24.26), we can say OCFT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 32.17 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y9.42%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- No dividends for OCFT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OneConnect Financial Technology Co Ltd / OCFT FAQ
Can you provide the ChartMill fundamental rating for OneConnect Financial Technology Co Ltd?
ChartMill assigns a fundamental rating of 2 / 10 to OCFT.
What is the valuation status of OneConnect Financial Technology Co Ltd (OCFT) stock?
ChartMill assigns a valuation rating of 1 / 10 to OneConnect Financial Technology Co Ltd (OCFT). This can be considered as Overvalued.
How profitable is OneConnect Financial Technology Co Ltd (OCFT) stock?
OneConnect Financial Technology Co Ltd (OCFT) has a profitability rating of 1 / 10.
What is the expected EPS growth for OneConnect Financial Technology Co Ltd (OCFT) stock?
The Earnings per Share (EPS) of OneConnect Financial Technology Co Ltd (OCFT) is expected to decline by -187.69% in the next year.