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Sanan Optoelectronics Co.,Ltd (600703) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Sanan Optoelectronics Co.,Ltd

600703Market cap $8.06BPrice $1.8

Country🇨🇳China

SectorTechnology

IndustrySemiconductors

Manufactures LED chips and compound semiconductors, powering everything from phone flashes to 5G base stations. China's largest LED chipmaker, it's now betting big on third-generation semiconductors like gallium nitride to fuel electric vehicles and power electronics.

In Bastion Portfolios?

52W Return-9%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+10%7

Revenue Forecast

Rev CAGR (1y)+10%6

Rev CAGR (3y)+8%6

Rev CAGR (5y)+6%5

Earnings Forecast

EPS Growth Y+1Loss1

EPS Growth Y+20%5

EPS Growth Y+3+14%7

Quality

Margins

EBIT Margin-7%1

Net Income Margin-4%1

Free Cash Flow Margin-2%2

Debt

Net Debt/EBITDA2.14

Efficiency

ROE-2%2

ROA-1%2

Earnings Stability11

GEAR+VERY WEAK6

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)na–

P/E Ratio (Forward 3y)3281

P/BV1.68

EV Multiples

EV/EBITDA Fwd125

EV/EBIT Fwd184

Yield

Free Cash Flow Yield-0.5%2

Dividend Yieldna–

Momentum

Short term

1 month return-11%2

3 month return-31%1

YTD return-19%2

Mid term

Price vs 52wHigh51%1

1 year return-26%2

Long term

3 year return-25%2

5 year return-66%1

Risk Shield

Price Risk

Beta0.85

Volatility63%2

Free Cash Flow

Free Cash Flow Margin-2%2

Free Cash Flow Yield-0.5%2

Quality

ROCE-2%1

Earnings Stability11

Net Debt/EBITDA2.14

02Growth

Is it actually growing, and how fast?

600703Sanan Optoelectronics Co.,Ltd

Revenue FY25$2.6B

GROWTH RATING↗

AVERAGE51 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+10%7

Revenue, next 1Y+10%6

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+6%5

EARNINGS FORECAST▾SCORE

EPS growth, FY26ELoss1

EPS growth, FY27E0%5

EPS growth, FY28E+14%7

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 10%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

WATCH

A mid-pack grower, ahead of 51% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 10%/yr over the last 3 years and is set to keep growing around 8%/yr.

Over five years revenue is set to grow 6%/yr, about average versus companies worldwide.5/10

WEAKNESSES

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Top-Line Rocket

A middle-of-the-pack grower. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

600703Sanan Optoelectronics Co.,Ltd

Total return Current−2.3%

Price return Current−8.1%

MOMENTUM RATING↗

VERY WEAK2 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-11%2

3-month return-31%1

YTD return-19%2

MID & LONG-TERM▾SCORE

% of 52-week high51%1

1-year return-26%2

3-year return-25%2

5-year return-66%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-25% over three years and -66% over five), behind 80% of the market.

It's down 26% over the past year, now 49% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-11%), over three months (-31%) and so far this year (-19%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the multi-year record is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Sanan Opto. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

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02Growth

Is it actually growing, and how fast?

600703Sanan Optoelectronics Co.,Ltd

Revenue FY25$2.6B

GROWTH RATING↗

AVERAGE51 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+10%7

Revenue, next 1Y+10%6

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+6%5

EARNINGS FORECAST▾SCORE

EPS growth, FY26ELoss1

EPS growth, FY27E0%5

EPS growth, FY28E+14%7

GROWTH ASSESSMENT

STRENGTHS

Revenue grew 10%/yr over the last 3 years, ahead of 60% of companies worldwide.7/10

WATCH

A mid-pack grower, ahead of 51% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 10%/yr over the last 3 years and is set to keep growing around 8%/yr.

Over five years revenue is set to grow 6%/yr, about average versus companies worldwide.5/10

WEAKNESSES

The company is loss-making, so its revenue growth is not backed by profit yet.

BOTTOM LINE

Top-Line Rocket

A middle-of-the-pack grower. The one thing to watch: the company is not profitable yet.

03Price Momentum

Is the market behind it right now?

600703Sanan Optoelectronics Co.,Ltd

Total return Current−2.3%

Price return Current−8.1%

MOMENTUM RATING↗

VERY WEAK2 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-11%2

3-month return-31%1

YTD return-19%2

MID & LONG-TERM▾SCORE

% of 52-week high51%1

1-year return-26%2

3-year return-25%2

5-year return-66%1

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

None flagged.

WEAKNESSES

Weak long-term results. It has been a disappointing long-term hold (-25% over three years and -66% over five), behind 80% of the market.

It's down 26% over the past year, now 49% below its 52-week high. That is lagging the market.

The stock is underperforming over the past month (-11%), over three months (-31%) and so far this year (-19%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Sanan Opto. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community