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600588.SS

STRONG SELLREMOVE

Yonyou Network Technology Co.,Ltd. · Technology · China · $5.2B · Avg Vol: $82M/d

14
StockRank
Q
25
V
46
M
30
P/E (TTM)
ROE
-15.3%
D/E
0.5x
Dividend %
AI CONVICTION THESIS

Yonyou Network is a major Chinese ERP software provider. While software businesses are typically asset-light, Yonyou is currently undergoing a painful cloud transition that has depressed margins and cash flows. It does not directly align with our active macro themes and faces intense domestic competition.

COMPANY DESCRIPTION

Yonyou Network Technology Co., Ltd. provides enterprise resource planning (ERP) software, cloud services, and digital solutions for businesses. As one of China's largest domestic ERP providers, the company benefits from high customer switching costs and the national push for software localization. It is a dominant enterprise software leader transitioning to a high-margin Software-as-a-Service (SaaS) business model.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGR
Revenue1.4B1.4B1.4B1.4B-0.3%
EPS0.01-0.04-0.09-0.06
Shares3.4B3.4B3.4B3.4B-0.5%
Debt666M917M1.0B711M2.2%
Equity1.7B1.5B1.2B1.1B-12.8%
Op CF42M-13M-40M120M41.6%
Inv CF-569M-80M-164M-199M
Fin CF728M309M43M-296M
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PRICE (1M)-20.4%
1.451.541.641.731.83May 8May 29Jun 18
SMA 50SMA 200
Close
$1.46
RSI (14)
43.3
52W High
$2.81
From 52W High
0.5%

SCORE BREAKDOWN

Quality
25
ROIC
-11.4%11.2
ROE
-15.3%11.5
GP/Assets
21.7%54.3
Op. Margin
-47.7%6.4
FCF/Assets
5.9%65.3
Piotroski
18.8
Int. Cover
-6.8x15.1
D/E Ratio
0.48x31.3
Current Ratio
0.66x3.0
Value
46
P/E (TTM)
N/A
EV/EBITDA
-26.2x89.3
P/FCF
189.1x51.4
P/B
5.0x32.2
P/S
3.7x45.2
Div Yield
N/A
Momentum
30
52W High %
52%16.7
RS 6M
-36%32.4
SMA 50/200
0.83x13.1
EPS Rev 4W
N/A
EPS Rev 12W
N/A
EPS Improve
68.5
Q Growth
N/A

FUNDAMENTALS

Market Cap
$5.2B
P/E (Forward)
46.0x
Gross Margin
50.4%

SECTOR PEERS

Closest peers in Technology, ranked by industry match, size, and score similarity. Cross-listings of 600588.SS are excluded.

TickerCompanyMkt CapStockRankSignal
600588.SSYonyou Network Technology Co.,Ltd.(you)$5.2B14STRONG SELL
688568.SSGeovis Technology Co.,Ltd$5.8B16STRONG SELL
300339.SZJiangsu Hoperun Software Co., Ltd.$4.7B11STRONG SELL
002195.SZShanghai Stonehill Technology Co., Ltd.$6.4B15STRONG SELL
0068.HKMANYCORE TECH$4.1B13STRONG SELL
2723.HKDEEPZERO$5.1B7STRONG SELL
688318.SSShenzhen Fortune Trend Technology Co., Ltd.$4.2B17STRONG SELL
300803.SZBeijing Compass Technology Development Co., Ltd.$8.3B13STRONG SELL
3896.HKKingsoft Cloud Holdings Limited$3.6B11STRONG SELL
6651.HKBeijing 51World Digital Twin Technology Co., Ltd.$5.1B4STRONG SELL

Peer medians: ROE 3.9% · P/E 77.3x · Gross margin 25.9%

Yonyou Network Technology Co.,Ltd. (600588.SS) — Stock Score Summary

Yonyou Network Technology Co.,Ltd. (600588.SS) has a MoatMap StockRank of 14/100 based on Quality (25/100), Value (46/100), and Momentum (30/100) factor scores. The current signal is STRONG SELL. Yonyou Network is a major Chinese ERP software provider. While software businesses are typically asset-light, Yonyou is currently undergoing a painful cloud transition that has depressed margins and cash flows. It does not directly align with our active macro themes and faces intense domestic competition.

Yonyou Network Technology Co., Ltd. provides enterprise resource planning (ERP) software, cloud services, and digital solutions for businesses. As one of China's largest domestic ERP providers, the company benefits from high customer switching costs and the national push for software localization. It is a dominant enterprise software leader transitioning to a high-margin Software-as-a-Service (SaaS) business model.

Key Financial Metrics

Price$1.46
Market Cap$5.2B
P/E (Forward)46.00
Price/Book5.01
Return on Equity-15.3%
Return on Invested Capital-11.4%
Debt/Equity48.10
Gross Margin50.4%
Operating Margin-47.7%
Revenue Growth5.9%
Free Cash Flow$28M

Yonyou Network Technology Co.,Ltd. operates in the Software - Application industry, part of the Technology sector (China).

Frequently Asked Questions

What is Yonyou Network Technology Co.,Ltd.’s (600588.SS) StockRank?
MoatMap’s StockRank for Yonyou Network Technology Co.,Ltd. (600588.SS) is 14/100, with a Strong Sell signal. It is a composite of Quality (25), Value (46), and Momentum (30) factor ranks across MoatMap’s 20,000+ stock universe.
Does Yonyou Network Technology Co.,Ltd. have an economic moat?
Yonyou Network Technology Co.,Ltd. (600588.SS) has a Quality factor score of 25/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Yonyou Network Technology Co.,Ltd. a buy, hold, or sell?
MoatMap’s current signal for Yonyou Network Technology Co.,Ltd. (600588.SS) is Strong Sell, based on a StockRank of 14/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Yonyou Network Technology Co.,Ltd. in?
Yonyou Network Technology Co.,Ltd. (600588.SS) operates in the Technology sector, specifically the Software - Application industry (China).