ONECONNECT FINANCIAL TECHNO (OCFT)
US68248T2042 - ADR
We assign a fundamental rating of 2 out of 10 to OCFT. OCFT was compared to 277 industry peers in the Software industry. OCFT may be in some trouble as it scores bad on both profitability and health. OCFT is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years OCFT always reported negative net income.
OCFT had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of -4.50%, OCFT perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
OCFT has a Return On Equity (-12.23%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.5% | ||
| ROE | -12.23% | ||
| 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's Gross Margin of 36.79% is on the low side compared to the rest of the industry. OCFT is outperformed by 76.81% of its industry peers.
OCFT's Gross Margin has improved in the last couple of years.
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 | 36.79% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.67%
GM growth 5Y6%
2. Health
2.1 Basic Checks
OCFT does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for OCFT remains at a similar level compared to 1 year ago.
OCFT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, OCFT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.96, we must say that OCFT is in the distress zone and has some risk of bankruptcy.
OCFT has a Altman-Z score of 0.96. This is in the lower half of the industry: OCFT underperforms 61.59% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that OCFT is not too dependend on debt financing.
The Debt to Equity ratio of OCFT (0.09) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.96 |
ROIC/WACCN/A
WACC7.86%
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.
OCFT has a worse Current ratio (1.06) than 75.36% of its industry peers.
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.
OCFT has a Quick ratio of 1.06. This is in the lower half of the industry: OCFT underperforms 74.28% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 94.52% over the past year.
Looking at the last year, OCFT shows a very negative growth in Revenue. The Revenue has decreased by -17.84% in the last year.
OCFT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.01% yearly.
EPS 1Y (TTM)94.52%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q52.06%
Revenue 1Y (TTM)-17.84%
Revenue growth 3Y3.45%
Revenue growth 5Y21.01%
Revenue growth Q2Q-25.58%
3.2 Future
OCFT is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.02% yearly.
The Revenue is expected to decrease by -3.29% on average over the next years.
EPS Next Y64.4%
EPS Next 2Y44.87%
EPS Next 3Y31.02%
EPS Next 5YN/A
Revenue Next Year-0.64%
Revenue Next 2Y1.09%
Revenue Next 3Y-3.29%
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
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as OCFT's earnings are expected to grow with 31.02% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y44.87%
EPS Next 3Y31.02%
5. Dividend
5.1 Amount
No dividends for OCFT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ONECONNECT FINANCIAL TECHNO
NYSE:OCFT (5/16/2024, 7:08:29 PM)
After market: 2.13 -0.04 (-1.84%)2.17
+0.02 (+0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap84.63M
Analysts
Price Target
Dividend
| Industry Rank | Sector 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 Rank | Sector 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 Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.5% | ||
| ROE | -12.23% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 36.79% | ||
| 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 Turnover0.45
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.06 | ||
| Quick Ratio | 1.06 | ||
| 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)
Growth
EPS 1Y (TTM)94.52%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y64.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-17.84%
Revenue growth 3Y3.45%
Revenue growth 5Y
Revenue growth 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