Nanjing Pharmaceutical Co., Ltd. (600713) 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

Nanjing Pharmaceutical Co., Ltd.

Why is Nanjing Pharmaceutical Co., Ltd. ?

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 6.95% and Operating profit at 5.77% 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 11.37% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 6.95% and Operating profit at 5.77% over the last 5 years

ROCE(HY) Lowest at 7.76%
INTEREST COVERAGE RATIO(Q) Lowest at 376.45
INVENTORY TURNOVER RATIO(HY) Lowest at 8.04 times

With ROE of 10.58%, it has a expensive valuation with a 0.93 Price to Book Value

Over the past year, while the stock has generated a return of 11.16%, its profits have fallen by -1.3%
At the current price, the company has a high dividend yield of 3.5

Underperformed the market in the last 1 year

The stock has generated a return of 11.16% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Nanjing Pharmaceutical Co., Ltd. for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Nanjing Pharmaceutical Co., Ltd.

-3.39%

0.88

20.80%

China Shanghai Composite

13.33%

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)

6.95%

EBIT Growth (5y)

5.77%

EBIT to Interest (avg)

4.03

Debt to EBITDA (avg)

5.77

Net Debt to Equity (avg)

1.40

Sales to Capital Employed (avg)

2.78

Tax Ratio

25.14%

Dividend Payout Ratio

38.81%

Pledged Shares

Institutional Holding

ROCE (avg)

9.08%

ROE (avg)

11.37%

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

0.93

EV to EBIT

13.02

EV to EBITDA

10.86

EV to Capital Employed

0.98

EV to Sales

0.34

PEG Ratio

Dividend Yield

3.49%

ROCE (Latest)

7.49%

ROE (Latest)

10.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

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

3What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -7.49% (YoY

CASH AND EQV(HY)

Highest at CNY 4,370.12 MM

DEBT-EQUITY RATIO (HY)

Lowest at 128.41 %

-9What is not working for the Company

ROCE(HY)

Lowest at 7.76%

INTEREST COVERAGE RATIO(Q)

Lowest at 376.45

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.04 times

OPERATING PROFIT(Q)

Lowest at CNY 283.74 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 2.15 %

PRE-TAX PROFIT(Q)

Lowest at CNY 180.85 MM

NET PROFIT(Q)

Lowest at CNY 110.27 MM

Here's what is working for Nanjing Pharmaceutical Co., Ltd.

Cash and Eqv

Highest at CNY 4,370.12 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 128.41 %

in the last five Semi-Annual periods

MOJO Watch

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

Debt-Equity Ratio

Raw Material Cost

Fallen by -7.49% (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 Nanjing Pharmaceutical Co., Ltd.

Interest Coverage Ratio

Lowest at 376.45

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 283.74 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 2.15 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY 180.85 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Lowest at CNY 110.27 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 8.04 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio