NasdaqCM:SGOC

Stock Analysis Report

Executive Summary

SGOCO Group, Ltd. designs, develops, and manufactures phase change material storage systems for applications on cooling and heating systems in Mainland China and Hongkong.


Snowflake Analysis

Adequate balance sheet and overvalued.


Similar Companies

Share Price & News

How has SGOCO Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SGOC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

SGOC

-7.8%

US Electronic

-7.6%

US Market


1 Year Return

-23.9%

SGOC

0.5%

US Electronic

10.2%

US Market

Return vs Industry: SGOC underperformed the US Electronic industry which returned 0.5% over the past year.

Return vs Market: SGOC underperformed the US Market which returned 10.2% over the past year.


Shareholder returns

SGOCIndustryMarket
7 Day-2.8%-7.8%-7.6%
30 Day4.9%-9.0%-4.5%
90 Day-7.5%-7.2%-0.6%
1 Year-23.9%-23.9%1.5%0.5%12.5%10.2%
3 Year-68.7%-68.7%26.5%22.9%37.1%28.3%
5 Year-71.3%-71.3%56.3%48.5%60.8%43.2%

Price Volatility Vs. Market

How volatile is SGOCO Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SGOCO Group undervalued compared to its fair value and its price relative to the market?

0.5x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SGOC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SGOC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SGOC is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: SGOC is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SGOC is good value based on its PB Ratio (0.5x) compared to the US Electronic industry average (1.9x).


Next Steps

Future Growth

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

20.9%

Forecasted Tech 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 SGOCO Group 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.


Next Steps

Past Performance

How has SGOCO Group performed over the past 5 years?

-39.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGOC is currently unprofitable.

Growing Profit Margin: SGOC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SGOC is unprofitable, and losses have increased over the past 5 years at a rate of -39.8% per year.

Accelerating Growth: Unable to compare SGOC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SGOC is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (12%).


Return on Equity

High ROE: SGOC has a negative Return on Equity (-8.12%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SGOCO Group's financial position?


Financial Position Analysis

Short Term Liabilities: SGOC's short term assets ($88.7M) exceed its short term liabilities ($14.8M).

Long Term Liabilities: SGOC's short term assets ($88.7M) exceed its long term liabilities ($12.4M).


Debt to Equity History and Analysis

Debt Level: SGOC's debt to equity ratio (3.3%) is considered satisfactory.

Reducing Debt: SGOC's debt to equity ratio has reduced from 4.8% to 3.3% over the past 5 years.


Balance Sheet

Inventory Level: SGOC has a high level of physical assets or inventory.

Debt Coverage by Assets: SGOC's debt is covered by short term assets (assets are 15.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Insufficient data to determine if SGOC has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SGOC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is SGOCO Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%4.0%industryaverage1.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SGOC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SGOC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SGOC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SGOC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SGOC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Raleigh Siu Lau (66yo)

1.7yrs

Tenure

0

Mr. Raleigh Siu Lau has been the Chief Executive Officer and President of SGOCO Group, Ltd. since June 8, 2018 Mr. Lau is a banker who has served for almost 40 years as the senior manager of Chong Hing Ban ...


Leadership Team

NamePositionTenureCompensationOwnership
Raleigh Siu Lau
CEO & President1.7yrsno data1.25% $860.0k
Xiao-Ming Hu
Interim Chief Financial Officer4.6yrsno data0.047% $32.3k
Wing Ling Lui
Chief Technology Officer1.7yrsno data0.62% $430.0k
Kathy Ko
Investor Relations Officer0yrsno datano data
Jessica Chong
Company Secretary0yrsno datano data

1.7yrs

Average Tenure

47yo

Average Age

Experienced Management: SGOC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Hok Fung Wai
Independent Director4.2yrsno data0.037% $25.8k
Pui Kiu Lau
Independent Director2.5yrsno data0.037% $25.8k
Wang Tai Li
Independent Director2.3yrsno data0.037% $25.8k
Mark Lau
Independent Director1.7yrsno datano data
Kei Sze Shing
Independent Director1.7yrsno datano data

2.3yrs

Average Tenure

39yo

Average Age

Experienced Board: SGOC's board of directors are not considered experienced ( 2.3 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 been substantially diluted in the past year, with total shares outstanding growing by 314%.


Top Shareholders

Company Information

SGOCO Group, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SGOCO Group, Ltd.
  • Ticker: SGOC
  • Exchange: NasdaqCM
  • Founded: 2005
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$68.823m
  • Shares outstanding: 80.03m
  • Website: https://www.sgocogroup.com

Number of Employees


Location

  • SGOCO Group, Ltd.
  • 8 Fui Yiu Kok Street
  • 21st Floor
  • Tsuen Wan
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGOCNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDMar 2010
SG51DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2010

Biography

SGOCO Group, Ltd. designs, develops, and manufactures phase change material storage systems for applications on cooling and heating systems in Mainland China and Hongkong. The company’s products include phase change material thermal energy storage products; LCD/LED monitors; and TV product-related and application-specific products. It is also involved in money lending services; and property lease and management activities. It sells its products under the SGOCO, Shangwei, and POVIZON brand names. The company was formerly known as SGOCO Technology, Ltd. SGOCO Group, Ltd. was founded in 2005 and is headquartered in Tsuen Wan, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/28 01:02
End of Day Share Price2020/02/27 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.