SERES Group Co., Ltd. (601127) 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

SERES Group Co., Ltd.

Why is SERES Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 3.18%

The company has been able to generate a Return on Capital Employed (avg) of 3.18% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 62.38% and Operating profit at 31.33% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 4.60% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 62.38% and Operating profit at 31.33% over the last 5 years

With a fall in Net Sales of -26.6%, the company declared Very Negative results in Jun 26

The company has declared negative results in Jun 26 after 10 consecutive negative quarters
OPERATING CASH FLOW(Y) Lowest at CNY 2,587.02 MM
NET SALES(Q) At CNY 31,747.41 MM has Fallen at -26.6%
ROCE(HY) Lowest at 4.04%

With ROE of 14.49%, it has a expensive valuation with a 2.78 Price to Book Value

Over the past year, while the stock has generated a return of -66.74%, its profits have risen by 12.6% ; the PEG ratio of the company is 1.5
At the current price, the company has a high dividend yield of 1.5

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 Automobiles)

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

Is SERES Group Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

SERES Group Co., Ltd.

-66.98%

-1.22

36.85%

China Shanghai Composite

3.23%

0.23

14.72%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

62.38%

EBIT Growth (5y)

31.33%

EBIT to Interest (avg)

-1.05

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

2.08

Tax Ratio

19.23%

Dividend Payout Ratio

22.88%

Pledged Shares

Institutional Holding

ROCE (avg)

7.18%

ROE (avg)

4.60%

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

2.78

EV to EBIT

20.56

EV to EBITDA

11.56

EV to Capital Employed

4.11

EV to Sales

0.57

PEG Ratio

1.53

Dividend Yield

1.46%

ROCE (Latest)

19.99%

ROE (Latest)

14.49%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

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

1What is working for the Company

CASH AND EQV(HY)

Highest at CNY 137,282.98 MM

-28What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 2,587.02 MM

NET SALES(Q)

At CNY 31,747.41 MM has Fallen at -26.6%

ROCE(HY)

Lowest at 4.04%

RAW MATERIAL COST(Y)

Grown by 36.12% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -2,004.12 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -6.31 %

PRE-TAX PROFIT(Q)

Lowest at CNY -3,148.17 MM

NET PROFIT(Q)

Lowest at CNY -2,436.91 MM

EPS(Q)

Lowest at CNY -1.42

Here's what is working for SERES Group Co., Ltd.

Cash and Eqv

Highest at CNY 137,282.98 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for SERES Group Co., Ltd.

Net Sales

At CNY 31,747.41 MM has Fallen at -26.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is extremely negative

Net Sales (CNY MM)

Pre-Tax Profit

At CNY -3,148.17 MM has Fallen at -211.28%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -2,436.91 MM has Fallen at -212.9%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Cash Flow

Lowest at CNY 2,587.02 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)

Operating Profit

Lowest at CNY -2,004.12 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -6.31 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -3,148.17 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 -2,436.91 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -1.42

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 36.12% (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

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