Rocky Mountain Chocolate Factory, Inc. (RMCF) 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

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Rocky Mountain Chocolate Factory, Inc.

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YanGuFang International Group Co., Ltd.

Why is Rocky Mountain Chocolate Factory, Inc. ?

Poor Management Efficiency with a low ROE of 1.70%

The company has been able to generate a Return on Equity (avg) of 1.70% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 4.86% and Operating profit at 0.36% over the last 5 years

Negative results in May 26

NET PROFIT(HY) At USD -4.59 MM has Grown at -42.5%
ROCE(HY) Lowest at -99.37%
DEBT-EQUITY RATIO (HY) Highest at 184.82 %

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -43.91%, its profits have risen by 16.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -43.91% returns in the last 1 year, the stock has also underperformed S&P 500 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 FMCG)

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

Is Rocky Mountain Chocolate Factory, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Rocky Mountain Chocolate Factory, Inc.

-43.91%

-0.82

85.41%

S&P 500

22.36%

1.70

13.18%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.86%

EBIT Growth (5y)

0.36%

EBIT to Interest (avg)

-2.92

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

2.13

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

32.58%

ROCE (avg)

2.73%

ROE (avg)

1.70%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

3.53

EV to EBIT

-8.88

EV to EBITDA

-14.43

EV to Capital Employed

2.12

EV to Sales

0.97

PEG Ratio

Dividend Yield

ROCE (Latest)

-23.83%

ROE (Latest)

-67.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD -2.5 MM

-14What is not working for the Company

NET PROFIT(HY)

At USD -4.59 MM has Grown at -42.5%

ROCE(HY)

Lowest at -99.37%

DEBT-EQUITY RATIO (HY)

Highest at 184.82 %

RAW MATERIAL COST(Y)

Grown by 57.92% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 0 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 0 times

NET SALES(Q)

Lowest at USD 6.11 MM

Here's what is working for Rocky Mountain Chocolate Factory, Inc.

Operating Cash Flow

Highest at USD -2.5 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Here's what is not working for Rocky Mountain Chocolate Factory, Inc.

Net Profit

At USD -4.59 MM has Grown at -42.5%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 184.82 % and Grown

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

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Sales

Lowest at USD 6.11 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Net Sales

At USD 6.11 MM has Fallen at -11.07%

over average net sales of the previous four periods of USD 6.87 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Inventory Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 0 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 57.92% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales