EDS  Exceed Company Ltd.

Exchange

NASDAQ

Sector

Finance

Industry

Business Services

Market Cap.

54.67M

Vuru Grade

48.19/100

Current Price

$2.00
+0 (+0%)

Growth Price

$4.62
Undervalued by 131.03%

Stability Price

$5.30
Undervalued by 164.77%

Company Metrics

  • P/E 3.07
  • P/S 0.19
  • P/B 0.15
  • EPS 1
  • Cash ROIC 7.56%
  • Cash Ratio 3.64
  • Dividend 0 / 0%
  • Avg. Vol. 10,119.00
  • Shares 33.08M
  • Market Cap. 54.67M

Company Description

Exceed Company Ltd. engages in the design, development, and wholesale of footwear, apparel, and accessories for sports and leisurewear consumers in China. The company offers running, leisure, basketball, skateboarding, canvas, tennis, and outdoor footwear; various apparel products, including sports tops, pants, jackets, track suits, and coats; and accessories, such as bags, socks, hats, and caps. ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Global Oil Demand to Exceed 100 Million Barrels Per Day By 2020
MarketPulse (blog) - Oct 19, 2017
OANDA Europe Limited is a company registered in England number 7110087 limited by shares with its registered office at Tower 42, Floor 9a, 25 Old Broad St, London EC2N 1HQ and is authorised and regulated by the Financial Conduct Authority, No: ...
A Look At The Fair Value Of West Fraser Timber Co Ltd (TSX:WFT)
Simply Wall St - 13 hours ago
Does the share price for West Fraser Timber Co Ltd (TSX:WFT) reflect its intrinsic value? Today, I will calculate this value by ... For a number of reasons a very conservative rate is used that cannot exceed that of the GDP. In this case I have used ...
China Dongxiang (Group) Co Ltd (3818) Is Yet to See Trading Action on Oct 23
Key Gazette - Oct 23, 2017
More recent China Dongxiang (Group) Co Ltd (HKG:3818) news were published by: Reuters.com which released: “Exclusive - Red flags: Alibaba's Ma and Ma's private equity firm” on July 17, 2014.
Global Spinal Fusion Market to Exceed at US$ 12561.9 Mn by 2027 End – Future ...
Markets Insider - Oct 16, 2017
Inc., K2M, Inc., MicroPort Scientific Corporation, Medtronic Plc., Johnson and Johnson (DePuy Synthes), Stryker Corporation, Integra Lifesciences Holdings Corp, Orthofix Holdings, Inc., Shandong Weigao Group Medical Polymer Company Limited, Bonovo ...
Daekee Global Company, Ltd.
Government Accountability Office - Oct 11, 2017
Daekee Global Company, Ltd. (Daekee), of Busan, South Korea, protests the terms of request for proposals (RFP) No. N6264917R0257, issued by the Department of Navy for ship husbanding services.
For Vinnie Johnson, a new game beckons
Crain's Detroit Business - 12 hours ago
Johnson expects the combined sales to exceed $2.6 billion in 2018. That revenue would put his company among the 75 or so biggest auto suppliers in the world, based on the Automotive News' list of ... Hundreds of millions of dollars in revenue later ...
Trump Says Fed Chair Pick Coming Shortly
MarketPulse (blog) - 17 hours ago
OANDA Europe Limited is a company registered in England number 7110087 limited by shares with its registered office at Tower 42, Floor 9a, 25 Old Broad St, London EC2N 1HQ and is authorised and regulated by the Financial Conduct Authority, No: ...
CRISIL ratings for Indian debt instruments-Oct 18
Reuters - Oct 18, 2017
Ltd NCD* CRISIL AA(SO) 1500 Assigned *Aggregate not to exceed Rs 150 crore Edelweiss Asset Reconstruction Co. Ltd LT Principle CRISIL PP-MLD 1500 Assigned Protected Market AAr(SO) Linked Debentures* *Aggregate not to exceed Rs 150 crore G.V. ...
Exceeding Expectations As Filly Sets Book 2 Record
Thoroughbred Daily News - Oct 10, 2017
Beat The Bank is owned by Vichai Srivaddhanaprabha's King Power Racing Co Ltd, which has been spending consistently large sums in Britain and Ireland over the last few months through Alastair Donald.
China Dongxiang (Group) Co Ltd (3818) Jumped 0.71% on Oct 20
Key Gazette - Oct 20, 2017
More recent China Dongxiang (Group) Co Ltd (HKG:3818) news were published by: Reuters.com which released: “Exclusive - Red flags: Alibaba's Ma and Ma's private equity firm” on July 17, 2014.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for EDS to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate EDS's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$2.00 Current Price

$4.62 Growth Price (DCF)

Undervalued by 131.03%


Growth Rate Assumed by Market: -331.30%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


EDS's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$5.30 Stability Price (EPV)

Undervalued by 164.77%


Discount Rate: 15.0%

$6.82 NCA Price

Undervalued by 241.08%

$0.99 Book Price

Overvalued by 50.37%


Poor Cash Return on Invested Capital over the past 5 years

EDS has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

EDS has only created $7.56 of cash for every $100 invested.
Figures in CNY. Fiscal year ends in December
20092010201120122013
Free Cash Flow -158.04M 530.08M 221.28M -367.95M -190.14M
divided by
Invested Capital 886.23M 773.91M 998.10M 1.51B 1.79B
Cash ROIC -17.83% 68.49% 22.17% -24.45% -10.61%

Excellent Return on Equity over the past 5 years

Over the past 5 years, EDS has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

EDS has generated $16.11 of Earnings for every $100 of Shareholders' Equity.
Figures in CNY. Fiscal year ends in December
20092010201120122013
Net Income 248.02M 351.64M 470.08M 198.94M 65.54M
divided by
Stockholders' Equity 1.15B 1.54B 1.96B 2.16B 2.23B
Return on Equity 21.60% 22.88% 23.95% 9.20% 2.94%

Mediocre Business Performance over the past 8 years

EDS isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

EDS has been unable to consistently create value for shareholders.
Figures in CNY. Fiscal year ends in December
20062007200820092010201120122013
Free Cash Flow -29,855.00 179,732.00 713,570.00 -158.04M 530.08M 221.28M -367.95M -190.14M

Very Strong Balance Sheet

EDS has more Cash than its Total Liabilities, resulting in $1.40 Net Cash per share. In other words, if you buy EDS today, the price you're paying for shares is actually $0.60 because $1.40 of Cash is included in the current share price. This much Cash is very healthy. It can help EDS sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in CNY. Fiscal year ends in December
20062007200820092010201120122013
Cash 77,957.00 1.97M 313,026.00 262.20M 762.80M 964.32M 657.79M 486.65M
Current Assets 502,469.00 500.10M 468.05M 1.17B 1.44B 1.70B 1.76B 1.67B
Total Assets 502,469.00 500.10M 468.05M 1.47B 1.74B 2.09B 2.27B 2.41B
Current Liabilities 531,543.00 5.26M 24.17M 319.35M 207.44M 123.34M 102.87M 133.66M
Total Liabilities 531,543.00 172.54M 163.95M 319.35M 207.44M 123.34M 102.87M 182.41M
Stockholder' Equity -29,074.00 327.56M 304.10M 1.15B 1.54B 1.96B 2.16B 2.23B
Current Ratio 0.95 95.02 19.37 3.65 6.94 13.79 17.09 12.49
TL-to-TA 1.06 0.35 0.35 0.22 0.12 0.06 0.05 0.08

Consistent Reinvestment of Profits over the past 8 years

EDS has consistently retained profits. This may put EDS in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, EDS can greatly improve their long-term economic picture.
Figures in CNY. Fiscal year ends in December
20062007200820092010201120122013
Retained Earnings -29,855.00 50,705.00 -1.84M 1.15B 631.93M 1.50B 2.18B 1.74B
Retained Earnings Growth - 269.84% -3,722.40% 62,624.49% -44.97% 137.75% 45.02% -20.30%

Competitive Industry over the past 8 years

EDS is likely operating in an industry with medium to low barriers to entry. This may mean that EDS doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that EDS invests heavily in R&D and Sales, General & Administrative expenses.

Only $6.45 of every $100 of Revenue have been profit, on average over the past 8 years.
Figures in CNY. Fiscal year ends in December
20062007200820092010201120122013
Net Income -29,855.00 78,643.00 -1.88M 248.02M 351.64M 470.08M 198.94M 65.54M
divided by
Revenue - - - 2.08B 2.70B 3.29B 2.38B 1.63B
Net Profit Margin - - - 11.94% 13.03% 14.29% 8.35% 4.02%

Inconsistent Gross Profit Margins over the past 8 years

EDS has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$26.81 of every $100 worth of sales have been Gross Profit, on average over the past 8 years.
Figures in CNY. Fiscal year ends in December
20062007200820092010201120122013
Gross Profit - - - 613.10M 841.64M 3.23B 675.72M 440.96M
divided by
Revenue - - - 2.08B 2.70B 3.29B 2.38B 1.63B
Gross Margin - - - 29.51% 31.18% 98.36% 28.35% 27.06%

High Capital Intensity over the past 8 years

EDS spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

94.12% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in CNY. Fiscal year ends in December
20062007200820092010201120122013
Capital Expenditure - - - 2.29M 8.44M 99.15M 138.63M 246.76M
divided by
Net Income -29,855.00 78,643.00 -1.88M 248.02M 351.64M 470.08M 198.94M 65.54M
Capital Expenditure Ratio - - - 0.92% 2.40% 21.09% 69.68% 376.49%

No Dividend History over the past 8 years

EDS has never distributed dividends or has recently suspended their dividend distribution.
Figures in CNY. Fiscal year ends in December
20062007200820092010201120122013
Dividend Paid - - - - - - - -
divided by
Shares Outstanding - 2.77M 10.50M 22.89M 33.12M 34.27M 33.00M 33.08M
Dividend Paid Per Share - - - - - - - -
Price at Year End - 7.20 7.29 8.60 8.23 4.90 1.34 1.66
Dividend Yield - - - - - - - -

History of Stock Buybacks over the past 8 years

EDS has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in CNY. Fiscal year ends in December
20062007200820092010201120122013
Shares Outstanding - 2.77M 10.50M 22.89M 33.12M 34.27M 33.00M 33.08M
Stock Bought Back - -100.00% -73.58% -54.14% -30.87% -3.37% 3.87% -0.25%
Share your thoughts about EDS

Sign Up or Log In to start contributing!


Discussion
Sort By:
1
Posted by TheRealDerivative  (on March 24, 2014)
In case you were wondering why this stock is "undervalued" by so much...
http://seekingalpha.com/article/284509-exceed-company-hardly-exceeding-expectations

Please beware of companies possibly falsifying financial statements
1
Posted by pbanik  (on April 19, 2014)
@TheRealDerivative Thank you. There are so many better stocks to invest in. This would be one of those companies I would never invest in, unless they did a permanent and sincere change in the way they do business. Falsifying financial information tells me the company, or at least one person in the company is corrupt and/or incompetent, and therefore, the company is to be avoided. $GM and $C are perfect examples of this. Their questionable ethics makes these companies I would want to avoid as investments, unless they genuinely change and become ethical and honest. If the giant hedge funds, and institutional investors, and others started shorting corrupt, unethical businesses, so the stock price crashes to zero, or even near zero, that would send a strong message, but that's unlikely to happen, unless their federal or national governments got behind the inititiatives to put the crooks out of business permanently. As for the employees, if they knew about the corruption, and did nothing about it, I don't feel sorry for them losing their jobs, because they're just as bad. I would feel bad for the ones who lost their jobs who have ethics, and had no knowledge of what was happening.
1
Posted by pbanik  (on August 22, 2013)
That' s a tough call, because the stock is greatly undervalued. I don't understand why they're holding more in cash per share, $4.22, than what the stock is currently trading for. The debt to equity ratio is only 3.08, so they could easily pay off their debt, and still have plenty of cash left over. I say buy more, and then let the CEO of the company buy you out at $1.72 offer price or higher, so you can walk away with a profit. http://finance.yahoo.com/q?s=f&ql=1 For every dollar in debt they have, they have nearly $13 in cash, so they can easily pay off the debt. According to my calculation, the debt works out $0.07712708766396674073543115888753 cents per share.
1
Posted by woolygator  (on August 21, 2013)
The CEO of Exceed has just made an offer @ 1.72 yesterday. The stock is at 1.56 Question should I sell now or wait for the price to get closer? Also does that mean that the top price will be 1.72 for the near future?
The stability price is 17.20 now.