Viomi Technology Co., Ltd, through its subsidiaries, develops and sells Internet-of-things-enabled (IoT-enabled) smart home products in the People's Republic of China.
The last earnings update was 8 days ago.
Discounted Cash Flow Calculation for NasdaqGS:VIOT using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
Note: Free cash flow to equity valuations ignore the company's cash or debt.
NasdaqGS:VIOT DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Viomi Technology's share price is below the future cash flow value, and at a moderate discount (> 20%).
Viomi Technology's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Viomi Technology's earnings available for a low price, and how does
this compare to other companies in the same industry?
Viomi Technology's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Viomi Technology's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Viomi Technology's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
4/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Viomi Technology's finances.
The net worth of a company is the difference between its assets and liabilities.
Viomi Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Viomi Technology's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Viomi Technology's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 30.3x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
These 4 Measures Indicate That Viomi Technology (NASDAQ:VIOT) Is Using Debt Safely
NasdaqGS:VIOT Historical Debt, September 3rd 2019 A Look At Viomi Technology's Liabilities Zooming in on the latest balance sheet data, we can see that Viomi Technology had liabilities of CN¥1.11b due within 12 months and liabilities of CN¥14.2m due beyond that. … This surplus suggests that Viomi Technology has a conservative balance sheet, and could probably eliminate its debt without much difficulty. … While Viomi Technology has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance.
How Viomi Technology Co., Ltd (NASDAQ:VIOT) Could Add Value To Your Portfolio
VIOT is a company with strong financial health as well as a buoyant future outlook. … Exceptional growth potential with flawless balance sheet One reason why investors are attracted to VIOT is its notable earnings growth potential in the near future of 82%. … NasdaqGS:VIOT Past and Future Earnings, August 5th 2019 Next Steps: For Viomi Technology, I've put together three relevant aspects you should further research: Historical Performance: What has VIOT's returns been like over the past?
Viomi Technology Co., Ltd (NASDAQ:VIOT) Is Employing Capital Very Effectively
Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Viomi Technology: 0.16 = CN¥175m ÷ (CN¥1.9b - CN¥830m) (Based on the trailing twelve months to March 2019.) Therefore, Viomi Technology has an ROCE of 16%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE. … The Bottom Line On Viomi Technology's ROCE Viomi Technology's ROCE does look good, but the level of current liabilities also contribute to that.
A Closer Look At Viomi Technology Co., Ltd's (NASDAQ:VIOT) Uninspiring ROE
View our latest analysis for Viomi Technology How Do You Calculate Return On Equity? … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Viomi Technology: 6.1% = CN¥51m ÷ CN¥1.1b (Based on the trailing twelve months to December 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Viomi Technology Have A Good Return On Equity?
Could Viomi Technology Co., Ltd's (NASDAQ:VIOT) Investor Composition Influence The Stock Price?
If you want to know who really controls Viomi Technology Co., Ltd (NASDAQ:VIOT), then you'll have to look at the makeup of its share registry. … Viomi Technology has a market capitalization of US$934m, so we would expect some institutional investors to have noticed the stock. … Check out our latest analysis for Viomi Technology
Is Viomi Technology Co., Ltd (NASDAQ:VIOT) Investing Your Capital Efficiently?
Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … Analysts use this formula to calculate return on capital employed:
How Many Viomi Technology Co., Ltd (NASDAQ:VIOT) Shares Do Institutions Own?
Every investor in Viomi Technology Co., Ltd (NASDAQ:VIOT) should be aware of the most powerful shareholder groups. … Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Viomi Technology is a smaller company with a market capitalization of US$540m, so it may still be flying under the radar of many institutional investors.
Viomi Technology Co., Ltd, through its subsidiaries, develops and sells Internet-of-things-enabled (IoT-enabled) smart home products in the People's Republic of China. The company offers IoT-enabled smart home products, including smart water purification systems; smart kitchen products, such as refrigerators, oven steamers, dishwashers, range hoods, and gas stoves; and other smart products comprising washing machines, water heaters, smart water kettles, robot vacuum cleaners, smart locks and other smart devices, and others. It also provides a suite of complementary consumable products; and value-added services. The company sells its products directly to consumers through its official Website, Viomi Store mobile app, and flagship stores on TMall.com and JD.com, as well as through www.xiaomiyoupin.com.; and offline experience stores. It has a strategic partnership with Xiaomi Corporation. Viomi Technology Co., Ltd was founded in 2014 and is headquartered in Guangzhou, China.
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