Beijing Tong RenTang Co., Ltd. (600085) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Beijing Tong RenTang Co., Ltd.

Why is Beijing Tong RenTang Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 7.89% and Operating profit at 7.39% over the last 5 years

The company has declared Negative results for the last 6 consecutive quarters

ROCE(HY) Lowest at 10.16%
DEBT-EQUITY RATIO (HY) Highest at -46.98 %
INVENTORY TURNOVER RATIO(HY) Lowest at 0.97 times

With ROE of 15.64%, it has a expensive valuation with a 3.49 Price to Book Value

Over the past year, while the stock has generated a return of -16.90%, its profits have fallen by -17.3%
At the current price, the company has a high dividend yield of 2.9

Below par performance in long term as well as near term

Along with generating -16.90% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Beijing Tong RenTang Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Beijing Tong RenTang Co., Ltd.

-22.72%

-1.97

15.75%

China Shanghai Composite

15.17%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.89%

EBIT Growth (5y)

7.39%

EBIT to Interest (avg)

24.22

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.57

Sales to Capital Employed (avg)

1.12

Tax Ratio

18.65%

Dividend Payout Ratio

89.86%

Pledged Shares

Institutional Holding

ROCE (avg)

87.20%

ROE (avg)

18.15%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.49

EV to EBIT

16.23

EV to EBITDA

11.29

EV to Capital Employed

6.94

EV to Sales

2.10

PEG Ratio

Dividend Yield

2.92%

ROCE (Latest)

42.76%

ROE (Latest)

15.64%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -10.76% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 9.55 times

-20What is not working for the Company

ROCE(HY)

Lowest at 10.16%

DEBT-EQUITY RATIO (HY)

Highest at -46.98 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.97 times

INTEREST COVERAGE RATIO(Q)

Lowest at 1,040.29

NET SALES(Q)

Lowest at CNY 3,539.02 MM

OPERATING PROFIT(Q)

Lowest at CNY 312.4 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.83 %

PRE-TAX PROFIT(Q)

Lowest at CNY 345.04 MM

NET PROFIT(Q)

At CNY 232.04 MM has Fallen at -36.02%

Here's what is working for Beijing Tong RenTang Co., Ltd.

Debtors Turnover Ratio

Highest at 9.55 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -10.76% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Beijing Tong RenTang Co., Ltd.

Net Sales

At CNY 3,539.02 MM has Fallen at -23.91%

over average net sales of the previous four periods of CNY 4,650.8 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Interest Coverage Ratio

Lowest at 1,040.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 345.04 MM has Fallen at -45.27%

over average net sales of the previous four periods of CNY 630.44 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at -46.98 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 0.97 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

Lowest at CNY 3,539.02 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 312.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.83 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 345.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 232.04 MM has Fallen at -36.02%

over average net sales of the previous four periods of CNY 362.7 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Non Operating Income

Highest at CNY 0.18 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income