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 -4.95% and Operating profit at -15.80% over the last 5 years

The company has declared negative results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 595.16 MM
ROCE(HY) Lowest at 10.93%
DEBT-EQUITY RATIO (HY) Highest at -32.24 %

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -44.28% 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 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 Furniture, Home Furnishing)

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

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

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

De Rucci Healthy Sleep Co., Ltd.

-46.5%

-1.52

29.70%

China Shanghai Composite

19.22%

1.40

13.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.95%

EBIT Growth (5y)

-15.80%

EBIT to Interest (avg)

92.39

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

0.91

Tax Ratio

17.84%

Dividend Payout Ratio

117.16%

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

1.29

EV to EBIT

11.01

EV to EBITDA

7.08

EV to Capital Employed

1.44

EV to Sales

0.81

PEG Ratio

Dividend Yield

3.10%

ROCE (Latest)

13.11%

ROE (Latest)

8.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -6.96% (YoY

-33What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 595.16 MM

ROCE(HY)

Lowest at 10.93%

DEBT-EQUITY RATIO (HY)

Highest at -32.24 %

INTEREST(Q)

At CNY 4.75 MM has Grown at 108.01%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,885.29

PRE-TAX PROFIT(Q)

At CNY 96.45 MM has Fallen at -40.98%

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.84 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 32.02 times

OPERATING PROFIT(Q)

Lowest at CNY 89.52 MM

NET PROFIT(Q)

Fallen at -32.34%

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

Raw Material Cost

Fallen by -6.96% (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.

Operating Cash Flow

Lowest at CNY 595.16 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 4.75 MM has Grown at 108.01%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,885.29

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 96.45 MM has Fallen at -40.98%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Debt-Equity Ratio

Highest at -32.24 % 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 89.52 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Net Profit

Fallen at -32.34%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 8.84 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 32.02 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio