Recon Technology, Ltd.

NasdaqCM:RCON Stock Report

Market Cap: US$62.0m

Recon Technology Valuation

Is RCON undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RCON when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate RCON's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate RCON's fair value for valuation analysis.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RCON?

Key metric: As RCON is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for RCON. This is calculated by dividing RCON's market cap by their current revenue.
What is RCON's PS Ratio?
PS Ratio6.6x
SalesCN¥68.85m
Market CapCN¥449.17m

Price to Sales Ratio vs Peers

How does RCON's PS Ratio compare to its peers?

The above table shows the PS ratio for RCON vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.3x
NCSM NCS Multistage Holdings
0.4x5.8%US$59.3m
NINE Nine Energy Service
0.1x3.0%US$53.4m
KLXE KLX Energy Services Holdings
0.1x3.4%US$103.2m
GIFI Gulf Island Fabrication
0.7xn/aUS$113.5m
RCON Recon Technology
6.6x14.3%US$62.0m

Price-To-Sales vs Peers: RCON is expensive based on its Price-To-Sales Ratio (6.6x) compared to the peer average (0.3x).

Price to Sales Ratio vs Industry

How does RCON's PS Ratio compare vs other companies in the US Energy Services Industry?

9 CompaniesPrice / SalesEstimated GrowthMarket Cap
KLXE KLX Energy Services Holdings
0.1x3.4%US$103.19m
NINE Nine Energy Service
0.1x3.0%US$53.38m
ENSV Enservco
0.1xn/aUS$3.15m
ICDI Independence Contract Drilling
0.006x6.9%US$1.31m
RCON 6.6xIndustry Avg. 1.0xNo. of Companies9PS00.61.21.82.43+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: RCON is expensive based on its Price-To-Sales Ratio (6.6x) compared to the US Energy Services industry average (1x).

Price to Sales Ratio vs Fair Ratio

What is RCON's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RCON PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio6.6x
Fair PS Ratio0.5x

Price-To-Sales vs Fair Ratio: RCON is expensive based on its Price-To-Sales Ratio (6.6x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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