Cathay Biotech, Inc. (688065) 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

Cathay Biotech, Inc.

Why is Cathay Biotech, Inc. ?

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)

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

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)

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

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 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 Specialty Chemicals)

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

Is Cathay Biotech, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Cathay Biotech, Inc.

9.54%

0.42

33.70%

China Shanghai Composite

21.43%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.48%

EBIT Growth (5y)

4.23%

EBIT to Interest (avg)

99.33

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.52

Sales to Capital Employed (avg)

0.19

Tax Ratio

15.23%

Dividend Payout Ratio

54.88%

Pledged Shares

Institutional Holding

ROCE (avg)

8.99%

ROE (avg)

4.40%

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

1.44

EV to EBIT

32.33

EV to EBITDA

22.36

EV to Capital Employed

1.82

EV to Sales

5.13

PEG Ratio

2.87

Dividend Yield

0.91%

ROCE (Latest)

5.61%

ROE (Latest)

3.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

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

4What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -14.06% (YoY

CASH AND EQV(HY)

Highest at CNY 18,657.54 MM

PRE-TAX PROFIT(Q)

Highest at CNY 195.82 MM

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 309.27 MM

ROCE(HY)

Lowest at 3.33%

INTEREST(Q)

At CNY 1.54 MM has Grown at 1,506.66%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.97 times

Here's what is working for Cathay Biotech, Inc.

Pre-Tax Profit

Highest at CNY 195.82 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Cash and Eqv

Highest at CNY 18,657.54 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -14.06% (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 309.27 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Interest

At CNY 1.54 MM has Grown at 1,506.66%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Debtors Turnover Ratio

Lowest at 4.97 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio