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

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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 3.64% and Operating profit at -22.90% over the last 5 years

With a fall in Net Sales of -5.52%, the company declared Very Negative results in Mar 25

The company has declared negative results for the last 11 consecutive quarters
NET PROFIT(HY) At CNY 186.58 MM has Grown at -58.92%
OPERATING CASH FLOW(Y) Lowest at CNY 2,501.77 MM
INTEREST COVERAGE RATIO(Q) Lowest at 241.97

With ROE of 2.36%, it has a expensive valuation with a 0.85 Price to Book Value

Over the past year, while the stock has generated a return of -3.27%, its profits have fallen by -54.3%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.27% 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 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.

3.99%

0.13

57.88%

China Shanghai Composite

15.19%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

3.64%

EBIT Growth (5y)

-22.90%

EBIT to Interest (avg)

3.13

Debt to EBITDA (avg)

0.68

Net Debt to Equity (avg)

0.28

Sales to Capital Employed (avg)

0.48

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

0.85

EV to EBIT

24.39

EV to EBITDA

7.56

EV to Capital Employed

0.88

EV to Sales

1.76

PEG Ratio

Dividend Yield

ROCE (Latest)

3.62%

ROE (Latest)

2.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

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

1What is working for the Company

DEBTORS TURNOVER RATIO(HY)

Highest at 6.21%

-25What is not working for the Company

NET PROFIT(HY)

At CNY 186.58 MM has Grown at -58.92%

OPERATING CASH FLOW(Y)

Lowest at CNY 2,501.77 MM

INTEREST COVERAGE RATIO(Q)

Lowest at 241.97

ROCE(HY)

Lowest at 3.1%

INTEREST(Q)

At CNY 196.72 MM has Grown at 10.71%

OPERATING PROFIT(Q)

Lowest at CNY 475.99 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 14.54 %

RAW MATERIAL COST(Y)

Grown by 26.27% (YoY

CASH AND EQV(HY)

Lowest at CNY 4,956.62 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 17.12%

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

Debtors Turnover Ratio

Highest at 6.21%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

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

Net Profit

At CNY 186.58 MM has Grown at -58.92%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 241.97 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 2,501.77 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 196.72 MM has Grown at 10.71%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Profit

Lowest at CNY 475.99 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 14.54 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 4,956.62 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 17.12%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 26.27% (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