Renhe Pharmacy Co., Ltd. (000650) 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

Renhe Pharmacy Co., Ltd.

Why is Renhe Pharmacy Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -3.79% and Operating profit at -8.87% over the last 5 years

Flat results in Mar 26

NET PROFIT(HY) At CNY 146.18 MM has Grown at -33.84%
ROCE(HY) Lowest at 5.77%
INVENTORY TURNOVER RATIO(HY) Lowest at 6.05 times

With ROE of 7.15%, it has a fair valuation with a 1.00 Price to Book Value

Over the past year, while the stock has generated a return of -1.86%, its profits have fallen by -15.1%
At the current price, the company has a high dividend yield of 2.9

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Below par performance in long term as well as near term

Along with generating -1.86% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Renhe Pharmacy Co., Ltd. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

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

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

Is Renhe Pharmacy Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Renhe Pharmacy Co., Ltd.

-4.6%

-0.75

27.11%

China Shanghai Composite

21.43%

1.55

13.83%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.79%

EBIT Growth (5y)

-8.87%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.61

Sales to Capital Employed (avg)

0.65

Tax Ratio

26.90%

Dividend Payout Ratio

53.06%

Pledged Shares

Institutional Holding

ROCE (avg)

25.78%

ROE (avg)

11.84%

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

1.00

EV to EBIT

4.44

EV to EBITDA

3.80

EV to Capital Employed

1.00

EV to Sales

0.64

PEG Ratio

Dividend Yield

2.88%

ROCE (Latest)

22.49%

ROE (Latest)

7.15%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bullish

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

10What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 965.21 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,281,213.89

RAW MATERIAL COST(Y)

Fallen by -5.03% (YoY

CASH AND EQV(HY)

Highest at CNY 8,112.31 MM

DEBT-EQUITY RATIO (HY)

Lowest at -63.57 %

NET SALES(Q)

Highest at CNY 1,129.22 MM

OPERATING PROFIT(Q)

Highest at CNY 235.7 MM

-9What is not working for the Company

NET PROFIT(HY)

At CNY 146.18 MM has Grown at -33.84%

ROCE(HY)

Lowest at 5.77%

INVENTORY TURNOVER RATIO(HY)

Lowest at 6.05 times

Here's what is working for Renhe Pharmacy Co., Ltd.

Interest Coverage Ratio

Highest at 1,281,213.89

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at CNY 965.21 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Net Sales

Highest at CNY 1,129.22 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Net Sales

At CNY 1,129.22 MM has Grown at 28%

over average net sales of the previous four periods of CNY 882.2 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CNY MM)

Operating Profit

Highest at CNY 235.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CNY MM)

Cash and Eqv

Highest at CNY 8,112.31 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -63.57 %

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 -5.03% (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 Renhe Pharmacy Co., Ltd.

Net Profit

At CNY 146.18 MM has Grown at -33.84%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 6.05 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio