Shifeng Cultural Development Co., Ltd. (002862) 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

Shifeng Cultural Development Co., Ltd.

Why is Shifeng Cultural Development Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.39%

The company has been able to generate a Return on Capital Employed (avg) of 0.39% signifying low profitability per unit of total capital (equity and debt)

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Net Sales has grown by an annual rate of 10.19% and Operating profit at 13.00% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has reported losses. Due to this company has reported negative ROE

With a fall in Net Sales of -10.52%, the company declared Very Negative results in Sep 25

The company has declared negative results in Jan 70 after 3 consecutive negative quarters
NET PROFIT(Q) At CNY -33.43 MM has Fallen at -1,904.02%
OPERATING CASH FLOW(Y) Lowest at CNY -15.64 MM
INTEREST(Q) At CNY 2.51 MM has Grown at 11.7%

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 -23.35%, its profits have risen by 46.1%
At the current price, the company has a high dividend yield of 0.1

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 Media & Entertainment)

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

Is Shifeng Cultural Development Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Shifeng Cultural Development Co., Ltd.

-23.35%

0.97

56.14%

China Shanghai Composite

13.33%

0.90

14.74%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.19%

EBIT Growth (5y)

13.00%

EBIT to Interest (avg)

-3.01

Debt to EBITDA (avg)

3.51

Net Debt to Equity (avg)

0.34

Sales to Capital Employed (avg)

0.59

Tax Ratio

4.37%

Dividend Payout Ratio

37.53%

Pledged Shares

Institutional Holding

ROCE (avg)

0.39%

ROE (avg)

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

6.68

EV to EBIT

228.61

EV to EBITDA

77.44

EV to Capital Employed

5.06

EV to Sales

7.00

PEG Ratio

Dividend Yield

0.08%

ROCE (Latest)

2.21%

ROE (Latest)

-7.51%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

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

3What is working for the Company

NET PROFIT(HY)

Higher at CNY -31.48 MM

-29What is not working for the Company

NET PROFIT(Q)

At CNY -33.43 MM has Fallen at -1,904.02%

OPERATING CASH FLOW(Y)

Lowest at CNY -15.64 MM

INTEREST(Q)

At CNY 2.51 MM has Grown at 11.7%

RAW MATERIAL COST(Y)

Grown by 6.05% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 52.79 %

NET SALES(Q)

Fallen at -10.52%

OPERATING PROFIT(Q)

Lowest at CNY -13.45 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -9.72 %

PRE-TAX PROFIT(Q)

Lowest at CNY -15.79 MM

EPS(Q)

Lowest at CNY -0.37

Here's what is not working for Shifeng Cultural Development Co., Ltd.

Pre-Tax Profit

At CNY -15.79 MM has Fallen at -506.55%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -33.43 MM has Fallen at -1,904.02%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 2.51 MM has Grown at 11.7%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY -15.64 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Net Sales

Fallen at -10.52%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY -13.45 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -9.72 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -15.79 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

EPS

Lowest at CNY -0.37

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Debt-Equity Ratio

Highest at 52.79 %

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

Raw Material Cost

Grown by 6.05% (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