Brother Enterprises Holding Co., Ltd. (002562) 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

Brother Enterprises Holding Co., Ltd.

Why is Brother Enterprises Holding Co., Ltd. ?

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)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 11.35% and Operating profit at 17.31% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 2.80% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.35% and Operating profit at 17.31% over the last 5 years

Flat results in Mar 26

INTEREST COVERAGE RATIO(Q) Lowest at 588.06
OPERATING PROFIT(Q) Lowest at CNY 57.7 MM
OPERATING PROFIT MARGIN(Q) Lowest at 5.85 %

With ROE of 3.05%, it has a very expensive valuation with a 0.90 Price to Book Value

Over the past year, while the stock has generated a return of 8.22%, its profits have risen by 29.1% ; the PEG ratio of the company is 1

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 Brother Enterprises Holding Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Brother Enterprises Holding Co., Ltd.

8.22%

1.14

51.13%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.35%

EBIT Growth (5y)

17.31%

EBIT to Interest (avg)

2.14

Debt to EBITDA (avg)

4.50

Net Debt to Equity (avg)

0.57

Sales to Capital Employed (avg)

0.63

Tax Ratio

16.48%

Dividend Payout Ratio

113.90%

Pledged Shares

Institutional Holding

ROCE (avg)

2.64%

ROE (avg)

2.80%

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

0.90

EV to EBIT

26.38

EV to EBITDA

9.79

EV to Capital Employed

0.92

EV to Sales

1.25

PEG Ratio

1.01

Dividend Yield

3.22%

ROCE (Latest)

3.50%

ROE (Latest)

3.05%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

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

6What is working for the Company

NET PROFIT(9M)

At CNY 68.58 MM has Grown at 44.07%

ROCE(HY)

Highest at 3.22%

RAW MATERIAL COST(Y)

Fallen by -25.5% (YoY

NET SALES(Q)

Highest at CNY 986.89 MM

-5What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 588.06

OPERATING PROFIT(Q)

Lowest at CNY 57.7 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.85 %

Here's what is working for Brother Enterprises Holding Co., Ltd.

Net Profit

At CNY 68.58 MM has Grown at 44.07%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

Net Sales

Highest at CNY 986.89 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Raw Material Cost

Fallen by -25.5% (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 588.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 57.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 5.85 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales