DR Corp. 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

DR Corp. Ltd.

Why is DR Corp. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -19.58% and Operating profit at -75.94% over the last 5 years

The company has declared negative results for the last 2 consecutive quarters

INTEREST(HY) At CNY 8.23 MM has Grown at 35.14%
INTEREST COVERAGE RATIO(Q) Lowest at 109.19
PRE-TAX PROFIT(Q) At CNY -9.21 MM has Fallen at -135.83%

With ROE of -0.44%, it has a fair valuation with a 0.15 Price to Book Value

Over the past year, while the stock has generated a return of -9.61%, its profits have fallen by -220.5%

Below par performance in long term as well as near term

Along with generating -9.61% 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 Gems, Jewellery And Watches)

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

Is DR Corp. Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

DR Corp. Ltd.

-9.61%

0.53

47.22%

China Shanghai Composite

16.78%

1.20

13.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-19.58%

EBIT Growth (5y)

-75.94%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.70

Sales to Capital Employed (avg)

0.23

Tax Ratio

43.63%

Dividend Payout Ratio

143.76%

Pledged Shares

Institutional Holding

ROCE (avg)

44.60%

ROE (avg)

5.87%

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

0.15

EV to EBIT

-817.51

EV to EBITDA

-20.31

EV to Capital Employed

-1.69

EV to Sales

-2.29

PEG Ratio

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

-0.44%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

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

3What is working for the Company

ROCE(HY)

Highest at 2.47%

RAW MATERIAL COST(Y)

Fallen by -38.57% (YoY

-38What is not working for the Company

INTEREST(HY)

At CNY 8.23 MM has Grown at 35.14%

INTEREST COVERAGE RATIO(Q)

Lowest at 109.19

PRE-TAX PROFIT(Q)

At CNY -9.21 MM has Fallen at -135.83%

NET PROFIT(Q)

At CNY -2.07 MM has Fallen at -112.04%

OPERATING CASH FLOW(Y)

Lowest at CNY -160.13 MM

NET SALES(Q)

Lowest at CNY 361.27 MM

OPERATING PROFIT(Q)

Lowest at CNY 4.5 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 1.25 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.97 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 17.43 times

Here's what is working for DR Corp. Ltd.

Raw Material Cost

Fallen by -38.57% (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 DR Corp. Ltd.

Interest

At CNY 8.23 MM has Grown at 35.14%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 109.19 and Fallen

In each period 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 -9.21 MM has Fallen at -135.83%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -2.07 MM has Fallen at -112.04%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

Lowest at CNY 361.27 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

Lowest at CNY 4.5 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 1.25 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Operating Cash Flow

Lowest at CNY -160.13 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Fallen at -11.38%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Inventory Turnover Ratio

Lowest at 0.97 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 17.43 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio