ScoreWhy is Brother Enterprises Holding Co., Ltd. ?
1
Poor Management Efficiency with a low ROCE of 2.64%
- The company has been able to generate a Return on Capital Employed (avg) of 2.64% signifying low profitability per unit of total capital (equity and debt)
2
High Debt Company with a Debt to Equity ratio (avg) at times
- Poor long term growth as Net Sales has grown by an annual rate of 17.19% and Operating profit at -0.81% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
- The company has been able to generate a Return on Equity (avg) of 2.80% signifying low profitability per unit of shareholders funds
3
Poor long term growth as Net Sales has grown by an annual rate of 17.19% and Operating profit at -0.81% over the last 5 years
4
The company has declared Positive results for the last 3 consecutive quarters
- OPERATING CASH FLOW(Y) Highest at CNY 152.56 MM
- NET SALES(HY) At CNY 1,747.18 MM has Grown at 18.94%
- PRE-TAX PROFIT(Q) At CNY 29.23 MM has Grown at 127.75%
5
With ROE of 2.86%, it has a expensive valuation with a 1.50 Price to Book Value
- Over the past year, while the stock has generated a return of 58.59%, its profits have risen by 143.4% ; the PEG ratio of the company is 0.4
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Brother Enterprises Holding Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Brother Enterprises Holding Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Brother Enterprises Holding Co., Ltd.
-100.0%
2.94
53.09%
China Shanghai Composite
15.19%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
17.19%
EBIT Growth (5y)
-0.81%
EBIT to Interest (avg)
2.14
Debt to EBITDA (avg)
4.50
Net Debt to Equity (avg)
0.57
Sales to Capital Employed (avg)
0.62
Tax Ratio
16.48%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
2.64%
ROE (avg)
2.80%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
52
Industry P/E
Price to Book Value
1.50
EV to EBIT
46.01
EV to EBITDA
13.12
EV to Capital Employed
1.32
EV to Sales
1.88
PEG Ratio
0.37
Dividend Yield
NA
ROCE (Latest)
2.88%
ROE (Latest)
2.86%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend21What is working for the Company
OPERATING CASH FLOW(Y)
Highest at CNY 152.56 MM
NET SALES(HY)
At CNY 1,747.18 MM has Grown at 18.94%
PRE-TAX PROFIT(Q)
At CNY 29.23 MM has Grown at 127.75%
RAW MATERIAL COST(Y)
Fallen by -40.69% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 3.93%
DEBTORS TURNOVER RATIO(HY)
Highest at 6.56%
NET PROFIT(Q)
At CNY 20.91 MM has Grown at 104.91%
-5What is not working for the Company
INTEREST COVERAGE RATIO(Q)
Lowest at 260.83
CASH AND EQV(HY)
Lowest at CNY 678.49 MM
OPERATING PROFIT(Q)
Lowest at CNY 36.87 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 4.04 %
Here's what is working for Brother Enterprises Holding Co., Ltd.
Pre-Tax Profit
At CNY 29.23 MM has Grown at 127.75%
over average net sales of the previous four periods of CNY 12.83 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (CNY MM)
Net Sales
At CNY 1,747.18 MM has Grown at 18.94%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (CNY MM)
Operating Cash Flow
Highest at CNY 152.56 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (CNY MM)
Net Profit
At CNY 20.91 MM has Grown at 104.91%
over average net sales of the previous four periods of CNY 10.2 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
Inventory Turnover Ratio
Highest at 3.93%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Debtors Turnover Ratio
Highest at 6.56%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its Debtors faster
Debtors Turnover Ratio
Raw Material Cost
Fallen by -40.69% (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 Brother Enterprises Holding Co., Ltd.
Interest Coverage Ratio
Lowest at 260.83
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 36.87 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 4.04 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Cash and Eqv
Lowest at CNY 678.49 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
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