De Rucci Healthy Sleep Co., Ltd. () 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

De Rucci Healthy Sleep Co., Ltd.

Why is De Rucci Healthy Sleep Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -4.82% and Operating profit at -4.80% over the last 5 years

Negative results in Sep 25

INTEREST(HY) At CNY 14.62 MM has Grown at 48.2%
OPERATING CASH FLOW(Y) Lowest at CNY 928.15 MM
DEBT-EQUITY RATIO (HY) Highest at -35.06 %

With ROE of 15.19%, it has a very attractive valuation with a 2.65 Price to Book Value

Over the past year, while the stock has generated a return of -19.75%, its profits have fallen by -16.4%
At the current price, the company has a high dividend yield of 0.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -19.75% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to De Rucci Healthy Sleep Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Furniture, Home Furnishing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is De Rucci Healthy Sleep Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

De Rucci Healthy Sleep Co., Ltd.

-19.75%

-0.77

25.63%

China Shanghai Composite

16.01%

1.07

14.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.82%

EBIT Growth (5y)

-4.80%

EBIT to Interest (avg)

92.39

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

0.95

Tax Ratio

17.84%

Dividend Payout Ratio

89.75%

Pledged Shares

Institutional Holding

ROCE (avg)

33.63%

ROE (avg)

18.52%

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

2.65

EV to EBIT

13.53

EV to EBITDA

10.00

EV to Capital Employed

3.73

EV to Sales

1.88

PEG Ratio

Dividend Yield

0.89%

ROCE (Latest)

27.60%

ROE (Latest)

15.19%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Bearish

OBV

Mildly Bullish

No Trend

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -13.93% (YoY

-23What is not working for the Company

INTEREST(HY)

At CNY 14.62 MM has Grown at 48.2%

OPERATING CASH FLOW(Y)

Lowest at CNY 928.15 MM

DEBT-EQUITY RATIO (HY)

Highest at -35.06 %

OPERATING PROFIT(Q)

Lowest at CNY 104.32 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.13 %

PRE-TAX PROFIT(Q)

Lowest at CNY 117.38 MM

NET PROFIT(Q)

Lowest at CNY 98.05 MM

EPS(Q)

Lowest at CNY 0.25

Here's what is working for De Rucci Healthy Sleep Co., Ltd.

Raw Material Cost

Fallen by -13.93% (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 De Rucci Healthy Sleep Co., Ltd.

Interest

At CNY 14.62 MM has Grown at 48.2%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 928.15 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)

Debt-Equity Ratio

Highest at -35.06 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Operating Profit

Lowest at CNY 104.32 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 8.13 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 117.38 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 98.05 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Net Profit

Fallen at -27.43%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.25

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)