LBX Pharmacy Chain JSC (603883) 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

LBX Pharmacy Chain JSC

Why is LBX Pharmacy Chain JSC ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 11.60% and Operating profit at -0.94% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 14.45% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.60% and Operating profit at -0.94% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET PROFIT(HY) At CNY 139.55 MM has Grown at -73.91%
INTEREST COVERAGE RATIO(Q) Lowest at 1,018.32
ROCE(HY) Lowest at 6.47%

With ROE of 8.50%, it has a very expensive valuation with a 1.88 Price to Book Value

Over the past year, while the stock has generated a return of -15.92%, its profits have fallen by -48%
At the current price, the company has a high dividend yield of 1.9

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -15.92% 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 LBX Pharmacy Chain JSC for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

LBX Pharmacy Chain JSC

-15.92%

-0.98

37.33%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.60%

EBIT Growth (5y)

-0.94%

EBIT to Interest (avg)

7.30

Debt to EBITDA (avg)

2.29

Net Debt to Equity (avg)

0.89

Sales to Capital Employed (avg)

1.50

Tax Ratio

26.26%

Dividend Payout Ratio

59.96%

Pledged Shares

Institutional Holding

ROCE (avg)

10.47%

ROE (avg)

14.45%

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

1.88

EV to EBIT

21.58

EV to EBITDA

7.29

EV to Capital Employed

1.48

EV to Sales

0.83

PEG Ratio

Dividend Yield

1.89%

ROCE (Latest)

6.85%

ROE (Latest)

8.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

No Trend

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

RAW MATERIAL COST(Y)

Fallen by -21.61% (YoY

CASH AND EQV(HY)

Highest at CNY 4,804.1 MM

-18What is not working for the Company

NET PROFIT(HY)

At CNY 139.55 MM has Grown at -73.91%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,018.32

ROCE(HY)

Lowest at 6.47%

DEBTORS TURNOVER RATIO(HY)

Lowest at 8.37%

OPERATING PROFIT(Q)

Lowest at CNY 384.59 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.85%

Here's what is working for LBX Pharmacy Chain JSC

Cash and Eqv

Highest at CNY 4,804.1 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -21.61% (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 LBX Pharmacy Chain JSC

Net Profit

At CNY 139.55 MM has Grown at -73.91%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest Coverage Ratio

Lowest at 1,018.32 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 Profit

Lowest at CNY 384.59 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)

Debtors Turnover Ratio

Lowest at 8.37% and Fallen

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

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Inventory Turnover Ratio

Lowest at 3.85%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio