Hubei Biocause Heilen Pharmaceutical 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

Hubei Biocause Heilen Pharmaceutical Co., Ltd.

Why is Hubei Biocause Heilen Pharmaceutical Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 20.10%

The company has been able to generate a Return on Capital Employed (avg) of 20.10% 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 -7.50% and Operating profit at -143.77% over the last 5 years

The company has declared negative results for the last 6 consecutive quarters

The company has declared negative results in Dec 23 after 4 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at CNY 73.98 MM
ROCE(HY) Lowest at 1.66%
DEBT-EQUITY RATIO (HY) Highest at -69.37 %

With ROE of 0.91%, it has a fair valuation with a 2.20 Price to Book Value

Over the past year, while the stock has generated a return of -1.95%, its profits have fallen by -83.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.95% 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 Pharmaceuticals & Biotechnology)

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

Is Hubei Biocause Heilen Pharmaceutical Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hubei Biocause Heilen Pharmaceutical Co., Ltd.

-1.95%

-0.36

57.14%

China Shanghai Composite

16.01%

1.07

14.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-7.50%

EBIT Growth (5y)

-143.77%

EBIT to Interest (avg)

87.03

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.70

Sales to Capital Employed (avg)

0.23

Tax Ratio

5.98%

Dividend Payout Ratio

78.65%

Pledged Shares

Institutional Holding

ROCE (avg)

20.10%

ROE (avg)

5.00%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

241

Industry P/E

Price to Book Value

2.20

EV to EBIT

-392.04

EV to EBITDA

116.89

EV to Capital Employed

4.91

EV to Sales

7.83

PEG Ratio

Dividend Yield

ROCE (Latest)

-1.25%

ROE (Latest)

0.91%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -25.56% (YoY

-23What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 73.98 MM

ROCE(HY)

Lowest at 1.66%

DEBT-EQUITY RATIO (HY)

Highest at -69.37 %

NET SALES(Q)

Lowest at CNY 84.13 MM

OPERATING PROFIT(Q)

Lowest at CNY -7.05 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -8.38 %

NET PROFIT(Q)

Lowest at CNY -3.68 MM

EPS(Q)

Lowest at CNY 0.01

Here's what is working for Hubei Biocause Heilen Pharmaceutical Co., Ltd.

Raw Material Cost

Fallen by -25.56% (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 Hubei Biocause Heilen Pharmaceutical Co., Ltd.

Net Profit

At CNY -3.68 MM has Fallen at -190.66%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 73.98 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)

Debt-Equity Ratio

Highest at -69.37 % 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

Net Sales

Lowest at CNY 84.13 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -7.05 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -8.38 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CNY -3.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)