Suofeiya Home Collection Co., Ltd. (002572) 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

Suofeiya Home Collection Co., Ltd.

Why is Suofeiya Home Collection Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.68% and Operating profit at -0.10% over the last 5 years

The company has declared Negative results for the last 3 consecutive quarters

NET SALES(HY) At CNY 4,969.45 MM has Grown at -10.37%
ROCE(HY) Lowest at 15.95%
CASH AND EQV(HY) Lowest at CNY 4,774.34 MM

With ROE of 19.45%, it has a attractive valuation with a 1.82 Price to Book Value

Over the past year, while the stock has generated a return of -27.21%, its profits have fallen by -0.4%
At the current price, the company has a high dividend yield of 7.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -27.21% 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 Suofeiya Home Collection Co., Ltd. should be less than 10%
Overall Portfolio exposure to Furniture, Home Furnishing should be less than 30%

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

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

Is Suofeiya Home Collection Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Suofeiya Home Collection Co., Ltd.

-26.27%

-1.13

25.44%

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)

5.68%

EBIT Growth (5y)

-0.10%

EBIT to Interest (avg)

19.71

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.08

Sales to Capital Employed (avg)

1.14

Tax Ratio

15.79%

Dividend Payout Ratio

69.93%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

20.93%

ROE (avg)

15.94%

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

1.82

EV to EBIT

10.05

EV to EBITDA

6.85

EV to Capital Employed

1.84

EV to Sales

1.23

PEG Ratio

Dividend Yield

7.32%

ROCE (Latest)

18.36%

ROE (Latest)

19.45%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Mildly 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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -11.14% (YoY

INVENTORY TURNOVER RATIO(HY)

Highest at 15 times

-8What is not working for the Company

NET SALES(HY)

At CNY 4,969.45 MM has Grown at -10.37%

ROCE(HY)

Lowest at 15.95%

CASH AND EQV(HY)

Lowest at CNY 4,774.34 MM

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.07 times

Here's what is working for Suofeiya Home Collection Co., Ltd.

Inventory Turnover Ratio

Highest at 15 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -11.14% (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 Suofeiya Home Collection Co., Ltd.

Net Sales

At CNY 4,969.45 MM has Grown at -10.37%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Cash and Eqv

Lowest at CNY 4,774.34 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio

Lowest at 6.07 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio