Meituan (3690) 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.

Kerry Logistics Network Ltd.

CN Logistics International Holdings 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 Meituan ?

Weak Long Term Fundamental Strength as the company has not declared results in the last 6 months

Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -0.72

Below par performance in long term as well as near term

Along with generating -51.71% returns in the last 1 year, the stock has also underperformed Hang Seng Hong Kong in the last 3 years, 1 year and 3 months

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 Transport Services)

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

Is Meituan for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Meituan

-100.0%

-0.59

43.79%

Hang Seng Hong Kong

18.06%

0.71

25.51%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

27.42%

EBIT Growth (5y)

-281.12%

EBIT to Interest (avg)

-0.72

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.75

Sales to Capital Employed (avg)

1.11

Tax Ratio

6.19%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.01%

ROCE (avg)

18.73%

ROE (avg)

6.09%

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

2.78

EV to EBIT

14.86

EV to EBITDA

11.75

EV to Capital Employed

8.62

EV to Sales

1.04

PEG Ratio

0.84

Dividend Yield

ROCE (Latest)

57.99%

ROE (Latest)

14.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

Not enough Data to analyse Financial Trend

Here's what is working for Meituan

Profit After Tax (PAT) - Half-Yearly

At HKD 6,308.92 MM has Grown at 5,281.38 %

Year on Year (YoY)

MOJO Watch

PAT trend is very positive

PAT (HKD MM)

Operating Cash Flow - Annually

Highest at HKD 44,776.56 MM and Grown

each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Net Sales - Half Yearly

At HKD 162,225.42 MM has Grown at 17.73 %

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Cash and Cash Equivalents - Half Yearly

Highest at HKD 58,037.28 MM

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents (HKD MM)

Debtors Turnover Ratio- Half Yearly

Highest at 101.08 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Meituan

Profit Before Tax less Other Income (PBT) - Quarterly

At HKD -684 MM has Fallen at -158.6 %

over average PBT of the previous four periods of HKD 1,168 MM

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (HKD MM)

Operating Profit (PBDIT) - Quarterly

Lowest at HKD -287 MM.

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (HKD MM)

Operating Profit Margin - Quarterly

Lowest at -0.36%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales (HKD MM)

Non Operating Income - Quarterly

is 137.90 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT (HKD MM)

Non Operating Income - Quarterly

Highest at HKD 2,488 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income (HKD MM)