Dareway SoftwareLtd (SHSE:688579) - Share price, News & Analysis

688579 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	3/6
Financial Health	6/6
Dividends	2/6

688579 Stock Overview

Dareway Software Co.,Ltd. develops and offers software solution for human resources, social security, industrial, and smart power application.

Rewards

PE ratio (31.9x) is below the Software industry average (47.4x)

Earnings grew by 3.8% over the past year

Risk Analysis

Dividend of 1.23% is not well covered by earnings

Dareway SoftwareLtd Competitors

Oracle

NYSE:ORCL

US$189.9b

Automatic Data Processing

NasdaqGS:ADP

US$87.2b

Workday

NasdaqGS:WDAY

US$44.7b

Ceridian HCM Holding

NYSE:CDAY

US$8.4b

Price History & Performance

Summary of all time highs, changes and price drops for Dareway SoftwareLtd
Historical stock prices
Current Share Price	CN¥8.12
52 Week High	CN¥17.98
52 Week Low	CN¥7.61
Beta	0
1 Month Change	-11.26%
3 Month Change	-31.30%
1 Year Change	-30.84%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-73.11%

Shareholder Returns

	688579	CN Software	CN Market
7D	-1.2%	2.1%	2.9%
1Y	-30.8%	-32.7%	-15.8%

Return vs Industry: 688579 exceeded the CN Software industry which returned -32.7% over the past year.

Return vs Market: 688579 underperformed the CN Market which returned -15.8% over the past year.

Price Volatility

Is 688579's price volatile compared to industry and market?
688579 volatility
688579 Average Weekly Movement	6.2%
Software Industry Average Movement	7.3%
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: 688579 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 688579's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	1,577	n/a	https://www.dareway.com.cn

Dareway Software Co.,Ltd. develops and offers software solution for human resources, social security, industrial, and smart power application. The company offers energy management, power consumption information, electricity demand management, and power quality management software.

Dareway SoftwareLtd Fundamentals Summary

How do Dareway SoftwareLtd's earnings and revenue compare to its market cap?
688579 fundamental statistics
Market Cap	CN¥3.27b
Earnings (TTM)	CN¥101.77m
Revenue (TTM)	CN¥636.02m

31.9x

P/E Ratio

5.1x

P/S Ratio

Is 688579 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
688579 income statement (TTM)
Revenue	CN¥636.02m
Cost of Revenue	CN¥328.82m
Gross Profit	CN¥307.20m
Other Expenses	CN¥205.43m
Earnings	CN¥101.77m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.25
Gross Margin	48.30%
Net Profit Margin	16.00%
Debt/Equity Ratio	0%

How did 688579 perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

39%

Payout Ratio

Valuation

Is Dareway SoftwareLtd undervalued compared to its fair value and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

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

31.92x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 688579 (CN¥8.12) is trading above our estimate of fair value (CN¥1.94)

Significantly Below Fair Value: 688579 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: 688579 is good value based on its PE Ratio (31.9x) compared to the CN Software industry average (47.4x).

PE vs Market: 688579 is poor value based on its PE Ratio (31.9x) compared to the CN market (30.4x).

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 688579's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: 688579 is good value based on its PB Ratio (2.6x) compared to the CN Software industry average (2.8x).

Future Growth

How is Dareway SoftwareLtd forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

34.1%

Forecasted Software industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Dareway SoftwareLtd has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Dareway SoftwareLtd performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

18.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 688579 has high quality earnings.

Growing Profit Margin: 688579's current net profit margins (16%) are lower than last year (20%).

Past Earnings Growth Analysis

Earnings Trend: 688579's earnings have grown by 18.6% per year over the past 5 years.

Accelerating Growth: 688579's earnings growth over the past year (3.8%) is below its 5-year average (18.6% per year).

Earnings vs Industry: 688579 earnings growth over the past year (3.8%) exceeded the Software industry -13%.

Return on Equity

High ROE: 688579's Return on Equity (8%) is considered low.

Financial Health

How is Dareway SoftwareLtd's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

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

Financial Position Analysis

Short Term Liabilities: 688579's short term assets (CN¥781.7M) exceed its short term liabilities (CN¥327.4M).

Long Term Liabilities: 688579's short term assets (CN¥781.7M) exceed its long term liabilities (CN¥64.8M).

Debt to Equity History and Analysis

Debt Level: 688579 is debt free.

Reducing Debt: 688579 has not had any debt for past 5 years.

Debt Coverage: 688579 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 688579 has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Dareway SoftwareLtd 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

1.23%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 688579's dividend (1.23%) is higher than the bottom 25% of dividend payers in the CN market (0.55%).

High Dividend: 688579's dividend (1.23%) is low compared to the top 25% of dividend payers in the CN market (2.11%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether 688579's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 688579's dividend payments are increasing as they only just started paying a dividend.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (39.3%), 688579's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: 688579 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?

CEO

Dareway SoftwareLtd has no CEO, or we have no data on them.

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	2022/05/17 00:00
End of Day Share Price	2022/05/17 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31