Bestore Co., Ltd. (603719) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Bestore Co., Ltd.

Why is Bestore Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -4.88% and Operating profit at -189.75% over the last 5 years

The company has declared negative results for the last 8 consecutive quarters

NET SALES(HY) At CNY 3,397.58 MM has Grown at -23.96%
PRE-TAX PROFIT(Q) At CNY -46.64 MM has Fallen at -597.45%
NET PROFIT(Q) At CNY -39.46 MM has Fallen at -273.22%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -7.68%, its profits have fallen by -1482.9%
At the current price, the company has a high dividend yield of 4

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -7.68% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

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 Retailing)

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

Is Bestore Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bestore Co., Ltd.

-7.68%

-0.13

47.33%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.88%

EBIT Growth (5y)

-189.75%

EBIT to Interest (avg)

21.38

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.38

Sales to Capital Employed (avg)

2.57

Tax Ratio

6.74%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

15.21%

ROE (avg)

9.51%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

2.47

EV to EBIT

-18.89

EV to EBITDA

20.82

EV to Capital Employed

3.22

EV to Sales

0.72

PEG Ratio

Dividend Yield

3.95%

ROCE (Latest)

-17.04%

ROE (Latest)

-8.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

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 -18.57% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -31.32 %

-28What is not working for the Company

NET SALES(HY)

At CNY 3,397.58 MM has Grown at -23.96%

PRE-TAX PROFIT(Q)

At CNY -46.64 MM has Fallen at -597.45%

NET PROFIT(Q)

At CNY -39.46 MM has Fallen at -273.22%

ROCE(HY)

Lowest at -6.08%

CASH AND EQV(HY)

Lowest at CNY 2,637.69 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 14.76%

OPERATING PROFIT(Q)

Lowest at CNY -48.28 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -2.8 %

Here's what is working for Bestore Co., Ltd.

Debt-Equity Ratio

Lowest at -31.32 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -18.57% (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 Bestore Co., Ltd.

Net Sales

At CNY 3,397.58 MM has Grown at -23.96%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -46.64 MM has Fallen at -597.45%

over average net sales of the previous four periods of CNY -6.69 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -39.46 MM has Fallen at -273.22%

over average net sales of the previous four periods of CNY -10.57 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -48.28 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -2.8 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 2,637.69 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 14.76%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio