Chengdu Easton Biopharmaceuticals Co., Ltd. (688513) 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

Chengdu Easton Biopharmaceuticals Co., Ltd.

Why is Chengdu Easton Biopharmaceuticals Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 8.13% and Operating profit at 7.15% over the last 5 years

OPERATING CASH FLOW(Y) Highest at CNY 335.41 MM
RAW MATERIAL COST(Y) Fallen by -1.58% (YoY)
DEBT-EQUITY RATIO (HY) Lowest at -48.64 %

With ROE of 7.78%, it has a fair valuation with a 3.48 Price to Book Value

Over the past year, while the stock has generated a return of 79.71%, its profits have fallen by -4.7%
At the current price, the company has a high dividend yield of 0.5

Market Beating performance in long term as well as near term

Along with generating 79.71% returns in the last 1 year, the stock has outperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Chengdu Easton Biopharmaceuticals 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 Chengdu Easton Biopharmaceuticals Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Chengdu Easton Biopharmaceuticals Co., Ltd.

9.64%

0.77

59.13%

China Shanghai Composite

23.91%

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)

6.94%

EBIT Growth (5y)

4.54%

EBIT to Interest (avg)

85.62

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.48

Sales to Capital Employed (avg)

0.43

Tax Ratio

4.69%

Dividend Payout Ratio

30.06%

Pledged Shares

Institutional Holding

ROCE (avg)

14.76%

ROE (avg)

8.84%

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

2.70

EV to EBIT

35.98

EV to EBITDA

28.59

EV to Capital Employed

4.42

EV to Sales

4.85

PEG Ratio

2.43

Dividend Yield

1.37%

ROCE (Latest)

12.29%

ROE (Latest)

7.99%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

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

5What is working for the Company

ROCE(HY)

Highest at 9.54%

RAW MATERIAL COST(Y)

Fallen by -2.29% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at -50.41 %

DEBTORS TURNOVER RATIO(HY)

Highest at 5.77 times

-10What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 5,286.77

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.58 times

OPERATING PROFIT(Q)

Lowest at CNY 30.45 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 9.33 %

PRE-TAX PROFIT(Q)

Lowest at CNY 41.84 MM

NET PROFIT(Q)

Lowest at CNY 45.47 MM

EPS(Q)

Lowest at CNY 0.29

Here's what is working for Chengdu Easton Biopharmaceuticals Co., Ltd.

Debt-Equity Ratio

Lowest at -50.41 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio

Highest at 5.77 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -2.29% (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 Chengdu Easton Biopharmaceuticals Co., Ltd.

Interest Coverage Ratio

Lowest at 5,286.77

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 30.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 9.33 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 41.84 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 41.84 MM has Fallen at -40.86%

over average net sales of the previous four periods of CNY 70.74 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 45.47 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

At CNY 45.47 MM has Fallen at -32.22%

over average net sales of the previous four periods of CNY 67.09 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.29

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Inventory Turnover Ratio

Lowest at 1.58 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio