Deluxe Family Co., Ltd. (600503) 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

Deluxe Family Co., Ltd.

Why is Deluxe Family Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 1.33%

The company has been able to generate a Return on Capital Employed (avg) of 1.33% 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 -28.20% and Operating profit at -162.34% over the last 5 years

The company has declared negative results for the last 3 consecutive quarters

ROCE(HY) Lowest at -1.73%
NET SALES(Q) Lowest at CNY 25.6 MM
RAW MATERIAL COST(Y) Grown by 31.38% (YoY)

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -9.78%, its profits have fallen by -159%

Below par performance in long term as well as near term

Along with generating -9.78% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Realty)

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

Is Deluxe Family Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Deluxe Family Co., Ltd.

-3.13%

0.65

40.36%

China Shanghai Composite

15.17%

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)

-28.20%

EBIT Growth (5y)

-162.34%

EBIT to Interest (avg)

5.83

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

9.96%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.33%

ROE (avg)

1.94%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.46

EV to EBIT

-99.34

EV to EBITDA

-142.93

EV to Capital Employed

1.54

EV to Sales

16.07

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.55%

ROE (Latest)

-0.96%

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

Mildly Bearish

Mildly Bullish

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

OPERATING CASH FLOW(Y)

Highest at CNY 151.75 MM

NET PROFIT(HY)

Higher at CNY -27.41 MM

-28What is not working for the Company

ROCE(HY)

Lowest at -1.73%

NET SALES(Q)

Lowest at CNY 25.6 MM

RAW MATERIAL COST(Y)

Grown by 31.38% (YoY

DEBT-EQUITY RATIO (HY)

Highest at -12.3 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.52 times

OPERATING PROFIT MARGIN(Q)

Lowest at -78.84 %

NET PROFIT(Q)

At CNY -15.65 MM has Fallen at -30.88%

Here's what is working for Deluxe Family Co., Ltd.

Operating Cash Flow

Highest at CNY 151.75 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Here's what is not working for Deluxe Family Co., Ltd.

Net Sales

At CNY 25.6 MM has Fallen at -67.92%

over average net sales of the previous four periods of CNY 79.81 MM

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Net Sales

Lowest at CNY 25.6 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at -78.84 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY -15.65 MM has Fallen at -30.88%

over average net sales of the previous four periods of CNY -11.95 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at -12.3 %

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

Debtors Turnover Ratio

Lowest at 7.52 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 31.38% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales