Kerry Logistics Network Ltd. (636) 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

Sinotrans Ltd.

ZTO Express (Cayman), Inc.

CN Logistics International Holdings Ltd.

Kerry Logistics Network Ltd.

COSCO SHIPPING International (Hong Kong) Co., Ltd.

JD Logistics, Inc.

Hangzhou SF Intra-city Industrial Co., Ltd.

Meituan

Zall Smart Commerce Group Ltd.

Vision International Holdings Ltd.

Gogox Holdings Ltd.

Why is Kerry Logistics Network Ltd. ?

High Management Efficiency with a high ROCE of 17.49%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 10.37

High Debt company with Weak Long Term Fundamental Strength

Flat results in Dec 25

OPERATING CASH FLOW(Y) Lowest at HKD 6,244.27 MM
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
RAW MATERIAL COST(Y) Grown by 20.78% (YoY)

With ROE of 9.95%, it has a Expensive valuation with a 0.73 Price to Book Value

Over the past year, while the stock has generated a return of -14.23%, its profits have fallen by -8.6%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -14.23% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Kerry Logistics Network Ltd. should be less than 10%
Overall Portfolio exposure to Transport Services should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Transport Services)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Kerry Logistics Network Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Kerry Logistics Network Ltd.

-14.23%

-1.10

27.93%

Hang Seng Hong Kong

8.76%

0.45

19.63%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

6.80%

EBIT Growth (5y)

1.02%

EBIT to Interest (avg)

10.37

Debt to EBITDA (avg)

0.48

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

2.23

Tax Ratio

30.09%

Dividend Payout Ratio

34.48%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

17.49%

ROE (avg)

12.54%

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

0.73

EV to EBIT

5.76

EV to EBITDA

3.57

EV to Capital Employed

0.78

EV to Sales

0.27

PEG Ratio

Dividend Yield

2.26%

ROCE (Latest)

13.57%

ROE (Latest)

9.95%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly 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

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 899.01

DEBT-EQUITY RATIO (HY)

Lowest at 28.81 %

INVENTORY TURNOVER RATIO(HY)

Highest at 150.42 times

-8What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 6,244.27 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

RAW MATERIAL COST(Y)

Grown by 20.78% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.99 times

DIVIDEND PER SHARE(HY)

Lowest at HKD 3.99

OPERATING PROFIT MARGIN(Q)

Lowest at 7.27 %

Here's what is working for Kerry Logistics Network Ltd.

Interest Coverage Ratio

Highest at 899.01

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 28.81 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 150.42 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Here's what is not working for Kerry Logistics Network Ltd.

Operating Cash Flow

Lowest at HKD 6,244.27 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 (HKD MM)

Operating Profit Margin

Lowest at 7.27 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 3.99 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at HKD 3.99

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (HKD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Grown by 20.78% (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

Non Operating Income

Highest at HKD 0.15 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income