360 Security Technology (SHSE:601360) - Share price, News & Analysis

601360 fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	3/6
Past Performance	1/6
Financial Health	4/6
Dividends	2/6

601360 Stock Overview

360 Security Technology Inc., an internet security company, provides Internet and mobile security products in China.

Rewards

Earnings are forecast to grow 24.11% per year

Risk Analysis

Dividend of 1.2% is not well covered by earnings

Profit margins (7.9%) are lower than last year (23.7%)

360 Security Technology Competitors

Amazon.com

NasdaqGS:AMZN

US$1.2t

Tencent Holdings

SEHK:700

HK$3.5t

Alibaba Group Holding

NYSE:BABA

US$234.6b

NetEase

NasdaqGS:NTES

US$58.7b

Price History & Performance

Summary of all time highs, changes and price drops for 360 Security Technology
Historical stock prices
Current Share Price	CN¥8.33
52 Week High	CN¥13.72
52 Week Low	CN¥7.52
Beta	0.74
1 Month Change	-8.96%
3 Month Change	-21.86%
1 Year Change	-31.67%
3 Year Change	-62.75%
5 Year Change	n/a
Change since IPO	-85.37%

Shareholder Returns

	601360	CN Software	CN Market
7D	1.5%	0.7%	1.0%
1Y	-31.7%	-31.7%	-15.4%

Return vs Industry: 601360 matched the CN Software industry which returned -32.2% over the past year.

Return vs Market: 601360 underperformed the CN Market which returned -15.4% over the past year.

Price Volatility

Is 601360's price volatile compared to industry and market?
601360 volatility
601360 Average Weekly Movement	4.4%
Software Industry Average Movement	7.2%
Market Average Movement	7.4%
10% most volatile stocks in CN Market	10.3%
10% least volatile stocks in CN Market	5.3%

Stable Share Price: 601360 is less volatile than 75% of CN stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: 601360's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2005	7,393	Hongyi Zhou	https://www.360totalsecurity.com

360 Security Technology Inc., an internet security company, provides Internet and mobile security products in China. The company offers security services, including security consulting, security operation and maintenance, and security training services to state agencies and enterprises; and hardware products, such as mobile phones, children's watches, smart cameras, driving recorders, and home firewalls. 360 Security Technology Inc. was founded in 2005 and is based in Beijing, China.

360 Security Technology Fundamentals Summary

How do 360 Security Technology's earnings and revenue compare to its market cap?
601360 fundamental statistics
Market Cap	CN¥58.70b
Earnings (TTM)	CN¥853.61m
Revenue (TTM)	CN¥10.86b

68.8x

P/E Ratio

5.4x

P/S Ratio

Is 601360 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
601360 income statement (TTM)
Revenue	CN¥10.86b
Cost of Revenue	CN¥4.14b
Gross Profit	CN¥6.72b
Other Expenses	CN¥5.86b
Earnings	CN¥853.61m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.12
Gross Margin	61.85%
Net Profit Margin	7.86%
Debt/Equity Ratio	1.8%

How did 601360 perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

83%

Payout Ratio

Valuation

Is 360 Security Technology undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

68.76x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 601360 (CN¥8.33) is trading above our estimate of fair value (CN¥1.68)

Significantly Below Fair Value: 601360 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: 601360 is poor value based on its PE Ratio (68.8x) compared to the CN Software industry average (47.8x).

PE vs Market: 601360 is poor value based on its PE Ratio (68.8x) compared to the CN market (30.4x).

Price to Earnings Growth Ratio

PEG Ratio: 601360 is poor value based on its PEG Ratio (2.9x)

Price to Book Ratio

PB vs Industry: 601360 is good value based on its PB Ratio (1.7x) compared to the CN Software industry average (2.8x).

Future Growth

How is 360 Security Technology forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

24.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 601360's forecast earnings growth (24.1% per year) is above the savings rate (3.3%).

Earnings vs Market: 601360's earnings (24.1% per year) are forecast to grow faster than the CN market (23.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 601360's revenue (10.3% per year) is forecast to grow slower than the CN market (17.3% per year).

High Growth Revenue: 601360's revenue (10.3% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 601360's Return on Equity is forecast to be low in 3 years time (6%).

Past Performance

How has 360 Security Technology performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-20.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 601360 has high quality earnings.

Growing Profit Margin: 601360's current net profit margins (7.9%) are lower than last year (23.7%).

Past Earnings Growth Analysis

Earnings Trend: 601360's earnings have declined by 20.8% per year over the past 5 years.

Accelerating Growth: 601360's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 601360 had negative earnings growth (-69.8%) over the past year, making it difficult to compare to the Software industry average (-12.9%).

Return on Equity

High ROE: 601360's Return on Equity (2.3%) is considered low.

Financial Health

How is 360 Security Technology's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: 601360's short term assets (CN¥26.2B) exceed its short term liabilities (CN¥6.3B).

Long Term Liabilities: 601360's short term assets (CN¥26.2B) exceed its long term liabilities (CN¥1.2B).

Debt to Equity History and Analysis

Debt Level: 601360 has more cash than its total debt.

Reducing Debt: Insufficient data to determine if 601360's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: 601360's debt is not well covered by operating cash flow (17.4%).

Interest Coverage: 601360 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is 360 Security Technology current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.20%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 601360's dividend (1.2%) is higher than the bottom 25% of dividend payers in the CN market (0.55%).

High Dividend: 601360's dividend (1.2%) is low compared to the top 25% of dividend payers in the CN market (2.12%).

Stability and Growth of Payments

Stable Dividend: 601360 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 601360's dividend payments have increased, but the company has only paid a dividend for 4 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (83.2%), 601360's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 601360 is paying a dividend but the company has no free cash flows.

Next Steps

Explore strong dividend paying companies in the Software industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure

CEO

Hongyi Zhou (51 yo)

15.75yrs

Tenure

Mr. Hongyi Zhou is the Co-founder and Chief Executive Officer of 360 Security Technology Inc. (formerly known as Qihoo 360 Technology Co. Ltd.) Mr. Zhou serves as an Advisor at Eleven Two Capital. Prior to...

Leadership Team

Experienced Management: 601360's management team is seasoned and experienced (6.5 years average tenure).

Board Members

Experienced Board: 601360's board of directors are seasoned and experienced ( 11.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31