Digital China Information Service (SZSE:000555) - Share price, News & Analysis

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

555 Stock Overview

Digital China Information Service Company Ltd.

Rewards

PE ratio (28.8x) is below the CN market (30.4x)

Earnings are forecast to grow 21.3% per year

Risk Analysis

No risks detected for 555 from our risk checks.

Digital China Information Service Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Digital China Information Service
Historical stock prices
Current Share Price	CN¥10.93
52 Week High	CN¥16.85
52 Week Low	CN¥9.49
Beta	0.33
1 Month Change	-1.00%
3 Month Change	-28.66%
1 Year Change	-25.14%
3 Year Change	-7.45%
5 Year Change	-34.67%
Change since IPO	-14.94%

Shareholder Returns

	555	CN IT	CN Market
7D	1.0%	3.9%	3.6%
1Y	-25.1%	-20.4%	-14.6%

Return vs Industry: 000555 underperformed the CN IT industry which returned -20.4% over the past year.

Return vs Market: 000555 underperformed the CN Market which returned -14.6% over the past year.

Price Volatility

Is 555's price volatile compared to industry and market?
555 volatility
555 Average Weekly Movement	7.3%
IT Industry Average Movement	7.7%
Market Average Movement	7.3%
10% most volatile stocks in CN Market	10.2%
10% least volatile stocks in CN Market	5.3%

Stable Share Price: 000555 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 000555's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
n/a	13,361	Yibing Zhou	https://www.dcits.com

Digital China Information Service Company Ltd. provides technical services, agricultural informatization, application software development, special financial equipment, and integrated solutions for the financial, government, enterprises, telecommunications, agriculture, manufacturing, and other industries. Its technical services include IT planning and consulting, system operation and maintenance, quality testing, IT management outsourcing, data processing and cloud services, and other professional services.

Digital China Information Service Fundamentals Summary

How do Digital China Information Service's earnings and revenue compare to its market cap?
555 fundamental statistics
Market Cap	CN¥10.61b
Earnings (TTM)	CN¥368.22m
Revenue (TTM)	CN¥11.24b

28.8x

P/E Ratio

0.9x

P/S Ratio

Is 555 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
555 income statement (TTM)
Revenue	CN¥11.24b
Cost of Revenue	CN¥9.34b
Gross Profit	CN¥1.90b
Other Expenses	CN¥1.53b
Earnings	CN¥368.22m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.38
Gross Margin	16.90%
Net Profit Margin	3.28%
Debt/Equity Ratio	3.1%

How did 555 perform over the long term?

See historical performance and comparison

Dividends

0.4%

Current Dividend Yield

11%

Payout Ratio

Valuation

Is Digital China Information Service undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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

28.82x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: 000555 (CN¥10.93) is trading above our estimate of fair value (CN¥5.91)

Significantly Below Fair Value: 000555 is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: 000555 is good value based on its PE Ratio (28.8x) compared to the CN IT industry average (40.2x).

PE vs Market: 000555 is good value based on its PE Ratio (28.8x) compared to the CN market (30.4x).

Price to Earnings Growth Ratio

PEG Ratio: 000555 is poor value based on its PEG Ratio (1.4x)

Price to Book Ratio

PB vs Industry: 000555 is good value based on its PB Ratio (1.8x) compared to the CN IT industry average (2.5x).

Future Growth

How is Digital China Information Service forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

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

21.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 000555's forecast earnings growth (21.3% per year) is above the savings rate (3.3%).

Earnings vs Market: 000555's earnings (21.3% per year) are forecast to grow slower than the CN market (23.8% per year).

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

Revenue vs Market: 000555's revenue (9% per year) is forecast to grow slower than the CN market (17.2% per year).

High Growth Revenue: 000555's revenue (9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 000555's Return on Equity is forecast to be low in 3 years time (8.3%).

Past Performance

How has Digital China Information Service performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

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

13.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 000555 has high quality earnings.

Growing Profit Margin: 000555's current net profit margins (3.3%) are lower than last year (4.6%).

Past Earnings Growth Analysis

Earnings Trend: 000555's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: 000555's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 000555 had negative earnings growth (-24.1%) over the past year, making it difficult to compare to the IT industry average (0.8%).

Return on Equity

High ROE: 000555's Return on Equity (6.4%) is considered low.

Financial Health

How is Digital China Information Service'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: 000555's short term assets (CN¥9.1B) exceed its short term liabilities (CN¥5.7B).

Long Term Liabilities: 000555's short term assets (CN¥9.1B) exceed its long term liabilities (CN¥89.7M).

Debt to Equity History and Analysis

Debt Level: 000555 has more cash than its total debt.

Reducing Debt: 000555's debt to equity ratio has reduced from 39.5% to 3.1% over the past 5 years.

Debt Coverage: 000555's debt is well covered by operating cash flow (155.9%).

Interest Coverage: 000555 earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Digital China Information Service current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

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

0.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: 000555's dividend (0.37%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.55%).

High Dividend: 000555's dividend (0.37%) is low compared to the top 25% of dividend payers in the CN market (2.12%).

Stability and Growth of Payments

Stable Dividend: 000555 has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 000555's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (10.7%), 000555's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (19%), 000555's dividend payments are well covered by 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?

0.3yrs

Average board tenure

CEO

Yibing Zhou (58 yo)

no data

Tenure

CN¥2,365,800

Compensation

Mr. Yibing Zhou serves as the President of Digital China Information Service Company Ltd. He was Chairman of China at VSTECS Holdings Limited since November 2019 until 2020. Mr. Zhou has been Executive Par...

Board Members

Experienced Board: 000555's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.

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	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31