ScoreWhy is Rainbow Digital Commercial Co., Ltd. ?
1
Weak Long Term Fundamental Strength with an average Return on Capital Employed (ROCE) of 44.42%
- Poor long term growth as Net Sales has grown by an annual rate of -5.66% and Operating profit at -165.25% over the last 5 years
- High Debt Company with a Debt to Equity ratio (avg) at times
2
With a fall in Net Sales of -1.3%, the company declared Very Negative results in Mar 25
- The company has declared negative results for the last 3 consecutive quarters
- NET PROFIT(HY) At CNY 109.37 MM has Grown at -34.65%
- INTEREST COVERAGE RATIO(Q) Lowest at 296.53
- OPERATING CASH FLOW(Y) Lowest at CNY 1,643.19 MM
3
With ROE of 1.72%, it has a very expensive valuation with a 1.54 Price to Book Value
- Over the past year, while the stock has generated a return of 4.18%, its profits have fallen by -51.7%
- At the current price, the company has a high dividend yield of 1.1
4
Underperformed the market in the last 1 year
- The stock has generated a return of 4.18% in the last 1 year, much lower than market (China Shanghai Composite) returns of 15.18%
Real-Time Research ReportHow 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 Rainbow Digital Commercial Co., Ltd. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Rainbow Digital Commercial Co., Ltd.
0.0%
0.69
38.62%
China Shanghai Composite
14.77%
1.01
15.10%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-5.66%
EBIT Growth (5y)
-165.25%
EBIT to Interest (avg)
0.93
Debt to EBITDA (avg)
0.39
Net Debt to Equity (avg)
0.62
Sales to Capital Employed (avg)
1.74
Tax Ratio
23.17%
Dividend Payout Ratio
91.46%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
44.42%
ROE (avg)
3.43%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
89
Industry P/E
Price to Book Value
1.54
EV to EBIT
-214.13
EV to EBITDA
4.12
EV to Capital Employed
1.45
EV to Sales
0.63
PEG Ratio
NA
Dividend Yield
1.09%
ROCE (Latest)
-0.68%
ROE (Latest)
1.72%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Mildly Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend5What is working for the Company
RAW MATERIAL COST(Y)
Fallen by -7.7% (YoY
INVENTORY TURNOVER RATIO(HY)
Highest at 11.1%
PRE-TAX PROFIT(Q)
Highest at CNY 197.05 MM
NET PROFIT(Q)
Highest at CNY 151 MM
EPS(Q)
Highest at CNY 0.13
-18What is not working for the Company
NET PROFIT(HY)
At CNY 109.37 MM has Grown at -34.65%
INTEREST COVERAGE RATIO(Q)
Lowest at 296.53
OPERATING CASH FLOW(Y)
Lowest at CNY 1,643.19 MM
OPERATING PROFIT(Q)
Lowest at CNY 144.68 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 4.47 %
CASH AND EQV(HY)
Lowest at CNY 3,433.68 MM
DEBT-EQUITY RATIO
(HY)
Highest at 313.3 %
Here's what is working for Rainbow Digital Commercial Co., Ltd.
Pre-Tax Profit
Highest at CNY 197.05 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (CNY MM)
Net Profit
Highest at CNY 151 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (CNY MM)
EPS
Highest at CNY 0.13
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (CNY)
Inventory Turnover Ratio
Highest at 11.1%
in the last five Semi-Annual periodsMOJO Watch
Company has been able to sell its inventory faster
Inventory Turnover Ratio
Raw Material Cost
Fallen by -7.7% (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 Rainbow Digital Commercial Co., Ltd.
Interest Coverage Ratio
Lowest at 296.53 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Profit
Lowest at CNY 144.68 MM and Fallen
In each period in the last five periodsMOJO Watch
Near term Operating Profit trend is quite negative
Operating Profit (CNY MM)
Operating Profit Margin
Lowest at 4.47 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Operating Cash Flow
Lowest at CNY 1,643.19 MM
in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (CNY MM)
Cash and Eqv
Lowest at CNY 3,433.68 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is deteriorating
Cash and Cash Equivalents
Debt-Equity Ratio
Highest at 313.3 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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