Fundamental analysis: CLPS Incorporation (CLPS)

Awarener score: 8.3

Conclusion

The higher the Awarener score, the more bang you get for the buck. It measures how much genuine funds the company generates for the stock price paid (Superb), the business stability (unknown) and growth (unknown), and the company's inclination to return cash to the stockholders (Lacking).

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: a result could not be reached

Business growth could not be estimated, due to not enough input data. It's been unavailable to compare with peer companies.
CLPS Incorporation business stability could not be estimated, due to insufficient input data. It looks we cannot compare it to rivals.

Margins score: 4.8

CLPS profit margins -on goods and services sold- are usually hardly sufficient. They stand slightly better than rival companies.
Business profit on sales tends to be hardly sufficient. It's weak when measured against competitors.
Profits on sales made -available to repay debt and purchase properties- are usually meagre. They remain in a weak position compared to peers.
Earnings -before income taxes and interests on loans taken- tend to be hardly sufficient in relation to total revenues. They're still somewhat worse than similar companies.
Profits -before income taxes- are usually hardly sufficient considering total sales, and remain almost average when measured against rivals.
Total net profit tends to be hardly sufficient when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 1.0

CLPS Incorporation has an unknown gross margin growth, as there is not enough data to analyze. It's been impossible to compare to competitors.
In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
EBITDA growth is unknown due to insufficient inputs, which compares unknown against peer enterprises.
We were not able to provide an estimate for EBIT growth, because of lacking data. It turns to be not yet known in relation to similar stocks.
Profit before income tax growth was not estimated, on insufficient history. It was impossible to measure against rivals.
Net income growth could not be estimated, and so it is unknown against peer companies.
There was not enough input data to estimate EPS trend. It's been an impossibility to compare it with industry peers.

Miscellaneous score: 8.0

CLPS managed to pay little to no income taxes on profits made in the past years. It's been better than most peers.
Research and development expenses consume a low portion of revenues. It's weak when measured against competitors.
The company shows very good business growth in relation to research and development efforts. It stands in good shape compared to rival companies.

Profitability score: 6.0

CLPS Incorporation usually gets sufficient returns on the resources it controls. It proves almost average when measured against peer firms.
The company normally gets sufficient proceeds -on the resources directly invested in the business-. They remain lacking compared to similar companies.
There's usually some profitability -in relation to owned resources-. It ranks almost average when measured against competitors.
In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's below average when measured against comparable enterprises.

Usage of Funds score: 5.2

CLPS usually uses a slight portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is light. It stands below average when measured against rival firms.
The relationship between capital expenditures and depreciation is not known, because of not enough inputs, which is a big question mark in relation to industry peers.
In the past twelve months the stock paid no dividends. It came bottom tier against competitors.
The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains in a weak position compared to peer enterprises.
Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands rather normal in relation to rivals.
We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 5.5

CLPS Incorporation intangible assets (like brands and goodwill) represent a very small portion of resources controlled, according to accounting books, which is mostly safe. It happens to be great when measured against peer companies.
The company has roughly triple short-term resources than short-term obligations. Liquidity concerns are most likely unimportant. It turns to be a slight improvement compared to similar firms.
A very minor portion of resources controlled were provided for with financial debt. Financial strength is solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains well ranked against rival firms.
Resources controlled can be quickly made into cash, which is very good for liquidity and risk. It looks top tier when measured against rivals.
For every dollar of short-term obligations, the company has more than enough dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
For every dollar of short-term obligations, the company has roughly another of cash and equivalents, which is somewhat better than similar enterprises.
Usually, sales are on somewhat more than three months credit. It still ranks last-in-rank when measured against peers.
Normally has no inventories. It comes up as impressive in relation to competitors.
On average, it takes higher than four months from the purchase to charging customers. It happens to be bottom tier against peers.
On average pays suppliers during the first couple of weeks from the purchase. It ranks substantially worse when measured against industry peers.
The company pays its suppliers four months or more before charging its customers, so there's significant money invested in working capital. It's a disappointment compared to similar companies.
To what extent normalized EBITDA covers interest expenses is not known. It stands impossible to compare against rival firms.
Business earnings have usually been reasonable when measured against loans taken. Cutting back reinvesting in the business, it could take more than five years to repay the obligations with current profitability. It ranks weak when measured against comparable enterprises.
Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a very weak position compared to similar firms.
Resource exploitation is excellent when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still well ranked against peer companies.

Valuation score: 9.3

CLPS Incorporation looks extremely cheap in relation to profits and financial position. It happens to be top tier when measured against competitors.
Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains impressive in relation to peers.
In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands top-notch against similar companies.
The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still top tier when measured against industry firms.
In the past twelve months, the company has enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among somewhat more stockholders. It came up in a weak position compared to peer ventures.
This company is sitting in a mountain of cash. It's very well poised to substantially increase stockholder payments, or to fund new business projects. It looks top-notch against similar enterprises.
Considering the past twelve months, traditional Price-to-Earnings relation looks cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be attractive. It ranks top tier when measured against peer companies.
Comparing the current stock price with the past twelve-months revenues gives a very low relationship. One common cause includes profitability being very poor. It looks excellent in relation to rival firms.
The stock price is significantly below the accounting book value. Unless profitability is extremely low, the stock may be selling at a large discount. Pay attention to the other key indicators for hints. The company remains top-notch against peer firms.
In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be top tier when measured against industry peers.
In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still impressive in relation to peer companies.

Total score: 5.7

Company at a glance: CLPS Incorporation (CLPS)

Sector, industry: Technology, Information Technology Services

Market Cap: 0.03 billions

Revenues TTM: 0.13 billions

CLPS Incorporation provides information technology, consulting, and solutions to institutions operating in banking, insurance, and financial sectors in the People's Republic of China and internationally. It offers IT consulting services in credit card business areas, such as credit card application, account setup, authorization and activation, settlement, collection, promotion, point system, anti-fraud, statement, reporting, and risk management. The company also provides banking services, including business analysis, system design, development, testing, system maintenance, and operation support; and services in loans, deposit, general ledger, wealth management, debit card, anti-money-laundering, statement and reporting, and risk management, as well as architecture consulting services for banking systems, and online and mobile banking. In addition, it offers solutions in the field of wealth management; e-commerce solutions in online platforms, cross-border e-commerce, logistics, and back-end technology, such as big data analysis and intelligent decision-making among others; and driving, automatic control, and other AI-driven technology solutions for the automotive industry. Further, the company provides IT consulting services to its clients in the banking, wealth management, e-commerce, and automotive industries, among others; and software project development, maintenance, and testing services. Additionally, it offers CLPS Virtual Banking platform, a training platform for IT talents; recruitment and headhunting, as well as fee-for-service training services; and sells product and third-party software. The company was founded in 2005 and is headquartered in Kwun Tong, Hong Kong.