Cachet Pharmaceutical Co., Ltd. (002462) 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

Cachet Pharmaceutical Co., Ltd.

Why is Cachet Pharmaceutical Co., Ltd. ?

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of -5.53% and Operating profit at -25.27% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 12.08% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of -5.53% and Operating profit at -25.27% over the last 5 years

Flat results in Mar 26

INVENTORY TURNOVER RATIO(HY) Lowest at 6.79 times
RAW MATERIAL COST(Y) Grown by 15.38% (YoY)
NET SALES(Q) Lowest at CNY 3,972.18 MM

With ROE of 1.78%, it has a fair valuation with a 0.84 Price to Book Value

Over the past year, while the stock has generated a return of 0.62%, its profits have fallen by -72%
At the current price, the company has a high dividend yield of 1.3

Underperformed the market in the last 1 year

The stock has generated a return of 0.62% in the last 1 year, much lower than market (China Shanghai Composite) returns of 23.91%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Cachet Pharmaceutical 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 Cachet Pharmaceutical Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cachet Pharmaceutical Co., Ltd.

0.38%

0.32

39.02%

China Shanghai Composite

21.43%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.53%

EBIT Growth (5y)

-25.27%

EBIT to Interest (avg)

5.19

Debt to EBITDA (avg)

1.78

Net Debt to Equity (avg)

0.21

Sales to Capital Employed (avg)

3.20

Tax Ratio

43.90%

Dividend Payout Ratio

30.12%

Pledged Shares

Institutional Holding

ROCE (avg)

13.34%

ROE (avg)

12.08%

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

0.84

EV to EBIT

12.93

EV to EBITDA

7.65

EV to Capital Employed

0.83

EV to Sales

0.18

PEG Ratio

Dividend Yield

1.34%

ROCE (Latest)

6.46%

ROE (Latest)

1.78%

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

Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

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

7What is working for the Company

NET PROFIT(HY)

At CNY 8.14 MM has Grown at 133.77%

OPERATING CASH FLOW(Y)

Highest at CNY 1,228.31 MM

DEBT-EQUITY RATIO (HY)

Lowest at -3.87 %

-11What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.79 times

RAW MATERIAL COST(Y)

Grown by 15.38% (YoY

NET SALES(Q)

Lowest at CNY 3,972.18 MM

Here's what is working for Cachet Pharmaceutical Co., Ltd.

Net Profit

At CNY 8.14 MM has Grown at 133.77%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Debt-Equity Ratio

Lowest at -3.87 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Operating Cash Flow

Highest at CNY 1,228.31 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Cachet Pharmaceutical Co., Ltd.

Net Sales

At CNY 3,972.18 MM has Fallen at -18.62%

over average net sales of the previous four periods of CNY 4,881.29 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 6.79 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 3,972.18 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Raw Material Cost

Grown by 15.38% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales