Easyhome New Retail Group Co., Ltd. (000785) 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

Easyhome New Retail Group Co., Ltd.

Why is Easyhome New Retail Group Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 0.90% and Operating profit at -37.90% over the last 5 years

With a fall in Net Sales of -9.14%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 15 consecutive quarters
OPERATING CASH FLOW(Y) Lowest at CNY 2,325.76 MM
INTEREST COVERAGE RATIO(Q) Lowest at 104.97
ROCE(HY) Lowest at -5.81%

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 -26.12%, its profits have fallen by -46.4%

Below par performance in long term as well as near term

Along with generating -26.12% 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 Retailing)

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

Is Easyhome New Retail Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Easyhome New Retail Group Co., Ltd.

-26.53%

-0.53

41.01%

China Shanghai Composite

23.91%

1.73

13.79%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.90%

EBIT Growth (5y)

-37.90%

EBIT to Interest (avg)

3.13

Debt to EBITDA (avg)

0.68

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.46

Tax Ratio

32.47%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

14.03%

ROE (avg)

7.77%

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

0.84

EV to EBIT

87.17

EV to EBITDA

13.68

EV to Capital Employed

0.88

EV to Sales

2.11

PEG Ratio

Dividend Yield

ROCE (Latest)

1.01%

ROE (Latest)

1.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

Mildly Bearish

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

DEBT-EQUITY RATIO (HY)

Lowest at 73.67 %

-28What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 2,325.76 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 104.97

ROCE(HY)

Lowest at -5.81%

INVENTORY TURNOVER RATIO(HY)

Lowest at 11.88 times

OPERATING PROFIT(Q)

Lowest at CNY 148.69 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 5.89 %

RAW MATERIAL COST(Y)

Grown by 18.99% (YoY

CASH AND EQV(HY)

Lowest at CNY 1,901.35 MM

NET SALES(Q)

At CNY 2,522.91 MM has Fallen at -9.14%

NET PROFIT(Q)

Lowest at CNY 62.1 MM

Here's what is working for Easyhome New Retail Group Co., Ltd.

Debt-Equity Ratio

Lowest at 73.67 % and Grown

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

MOJO Watch

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

Debt-Equity Ratio

Here's what is not working for Easyhome New Retail Group Co., Ltd.

Interest Coverage Ratio

Lowest at 104.97 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

Operating Cash Flow

Lowest at CNY 2,325.76 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)

Operating Profit

Lowest at CNY 148.69 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 5.89 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

At CNY 62.1 MM has Fallen at -52.86%

over average net sales of the previous four periods of CNY 131.74 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 11.88 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Net Sales

At CNY 2,522.91 MM has Fallen at -9.14%

over average net sales of the previous four periods of CNY 2,776.69 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Profit

Lowest at CNY 62.1 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Cash and Eqv

Lowest at CNY 1,901.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Raw Material Cost

Grown by 18.99% (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