ScoreWhy is Cathay Biotech, Inc. ?
1
Poor Management Efficiency with a low ROCE of 8.99%
- The company has been able to generate a Return on Capital Employed (avg) of 8.99% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Net Sales has grown by an annual rate of 13.42% and Operating profit at -4.13% over the last 5 years
3
The company has declared Positive results for the last 4 consecutive quarters
- ROCE(HY) Highest at 4.1%
- INVENTORY TURNOVER RATIO(HY) Highest at 1.75 times
- RAW MATERIAL COST(Y) Fallen by -15.64% (YoY)
4
With ROE of 3.01%, it has a attractive valuation with a 2.13 Price to Book Value
- Over the past year, while the stock has generated a return of 10.93%, its profits have risen by 35.4% ; the PEG ratio of the company is 2
- At the current price, the company has a high dividend yield of 0.6
5
Underperformed the market in the last 1 year
- The stock has generated a return of 10.93% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Cathay Biotech, Inc. should be less than 10%
- Overall Portfolio exposure to Specialty Chemicals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Cathay Biotech, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Cathay Biotech, Inc.
-1.47%
0.42
33.70%
China Shanghai Composite
13.33%
1.58
14.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
13.42%
EBIT Growth (5y)
-4.13%
EBIT to Interest (avg)
99.33
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.52
Sales to Capital Employed (avg)
0.18
Tax Ratio
15.23%
Dividend Payout Ratio
47.53%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
8.99%
ROE (avg)
4.40%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
71
Industry P/E
Price to Book Value
2.13
EV to EBIT
71.52
EV to EBITDA
39.11
EV to Capital Employed
3.40
EV to Sales
8.75
PEG Ratio
2.00
Dividend Yield
0.63%
ROCE (Latest)
4.76%
ROE (Latest)
3.01%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Sideways
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
Mildly Bullish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend6What is working for the Company
ROCE(HY)
Highest at 4.1%
INVENTORY TURNOVER RATIO(HY)
Highest at 1.75 times
RAW MATERIAL COST(Y)
Fallen by -15.64% (YoY
CASH AND EQV(HY)
Highest at CNY 18,831.2 MM
-3What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at CNY 418 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 14.96 %
Here's what is working for Cathay Biotech, Inc.
Inventory Turnover Ratio
Highest at 1.75 times and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Cash and Eqv
Highest at CNY 18,831.2 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Raw Material Cost
Fallen by -15.64% (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 Cathay Biotech, Inc.
Operating Cash Flow
Lowest at CNY 418 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Operating Profit Margin
Lowest at 14.96 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
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