Juneyao Airlines Co., Ltd. (603885) 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

Juneyao Airlines Co., Ltd.

Why is Juneyao Airlines Co., Ltd. ?

Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 2.60%

Poor long term growth as Net Sales has grown by an annual rate of 15.13% and Operating profit at 23.60% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Flat results in Sep 25

INVENTORY TURNOVER RATIO(HY) Lowest at 60.58 times
OPERATING PROFIT MARGIN(Q) Lowest at 13.08 %

With ROE of 10.10%, it has a very expensive valuation with a 3.24 Price to Book Value

Over the past year, while the stock has generated a return of -1.16%, its profits have fallen by -23%
At the current price, the company has a high dividend yield of 0.7

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.16% 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 Airline)

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

Is Juneyao Airlines Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Juneyao Airlines Co., Ltd.

-13.59%

0.14

30.26%

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)

15.13%

EBIT Growth (5y)

23.60%

EBIT to Interest (avg)

-0.76

Debt to EBITDA (avg)

24.18

Net Debt to Equity (avg)

2.05

Sales to Capital Employed (avg)

0.73

Tax Ratio

23.82%

Dividend Payout Ratio

45.49%

Pledged Shares

Institutional Holding

ROCE (avg)

2.60%

ROE (avg)

4.37%

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

3.24

EV to EBIT

38.66

EV to EBITDA

9.66

EV to Capital Employed

1.76

EV to Sales

2.15

PEG Ratio

Dividend Yield

0.75%

ROCE (Latest)

4.55%

ROE (Latest)

10.10%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 8,071.53 MM

PRE-TAX PROFIT(Q)

At CNY 779.75 MM has Grown at 155.32%

NET PROFIT(Q)

At CNY 583.92 MM has Grown at 152.6%

-2What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 60.58 times

OPERATING PROFIT MARGIN(Q)

Lowest at 13.08 %

Here's what is working for Juneyao Airlines Co., Ltd.

Operating Cash Flow

Highest at CNY 8,071.53 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Pre-Tax Profit

At CNY 779.75 MM has Grown at 155.32%

over average net sales of the previous four periods of CNY 305.4 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 583.92 MM has Grown at 152.6%

over average net sales of the previous four periods of CNY 231.17 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Here's what is not working for Juneyao Airlines Co., Ltd.

Operating Profit Margin

Lowest at 13.08 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 60.58 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio