Sanquan Foods Co., Ltd. (002216) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Sanquan Foods Co., Ltd.

Why is Sanquan Foods Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -0.42% and Operating profit at -4.30% over the last 5 years

The company has declared Negative results for the last 8 consecutive quarters

INTEREST(HY) At CNY 6.78 MM has Grown at 41.51%
OPERATING CASH FLOW(Y) Lowest at CNY 757.96 MM
NET PROFIT(9M) At CNY 417.73 MM has Grown at -23.32%

With ROE of 11.76%, it has a fair valuation with a 1.56 Price to Book Value

Over the past year, while the stock has generated a return of -4.79%, its profits have fallen by -19.3%
At the current price, the company has a high dividend yield of 3.8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -4.79% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sanquan Foods Co., Ltd. should be less than 10%
Overall Portfolio exposure to FMCG should be less than 30%

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

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

Is Sanquan Foods Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Sanquan Foods Co., Ltd.

-5.51%

0.04

26.48%

China Shanghai Composite

14.77%

1.01

15.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.42%

EBIT Growth (5y)

-4.30%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.12

Sales to Capital Employed (avg)

1.45

Tax Ratio

22.00%

Dividend Payout Ratio

48.64%

Pledged Shares

Institutional Holding

ROCE (avg)

30.52%

ROE (avg)

17.76%

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

1.56

EV to EBIT

13.92

EV to EBITDA

10.11

EV to Capital Employed

1.90

EV to Sales

0.80

PEG Ratio

Dividend Yield

3.81%

ROCE (Latest)

13.68%

ROE (Latest)

11.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Sideways

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

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

2What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 7.75%

DEBTORS TURNOVER RATIO(HY)

Highest at 17.97%

-16What is not working for the Company

INTEREST(HY)

At CNY 6.78 MM has Grown at 41.51%

OPERATING CASH FLOW(Y)

Lowest at CNY 757.96 MM

NET PROFIT(9M)

At CNY 417.73 MM has Grown at -23.32%

ROCE(HY)

Lowest at 11.34%

DEBT-EQUITY RATIO (HY)

Highest at -12.15 %

Here's what is working for Sanquan Foods Co., Ltd.

Inventory Turnover Ratio

Highest at 7.75%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Debtors Turnover Ratio

Highest at 17.97%

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Sanquan Foods Co., Ltd.

Interest

At CNY 6.78 MM has Grown at 41.51%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 757.96 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Profit

At CNY 417.73 MM has Grown at -23.32%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at -12.15 %

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