Tangrenshen Group Co., Ltd. (002567) 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

Tangrenshen Group Co., Ltd.

Why is Tangrenshen Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 4.96%

The company has been able to generate a Return on Capital Employed (avg) of 4.96% 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 8.36% and Operating profit at -149.20% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 4.86% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 8.36% and Operating profit at -149.20% over the last 5 years

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 -20.36%, its profits have risen by 123.5% ; the PEG ratio of the company is 0.3

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -20.36% 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 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 Other Agricultural Products)

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

Is Tangrenshen Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Tangrenshen Group Co., Ltd.

-18.95%

-1.75

22.10%

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)

8.36%

EBIT Growth (5y)

-149.20%

EBIT to Interest (avg)

1.00

Debt to EBITDA (avg)

2.92

Net Debt to Equity (avg)

0.85

Sales to Capital Employed (avg)

1.92

Tax Ratio

2.41%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

4.96%

ROE (avg)

4.86%

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

1.19

EV to EBIT

24.26

EV to EBITDA

8.06

EV to Capital Employed

1.10

EV to Sales

0.46

PEG Ratio

0.26

Dividend Yield

ROCE (Latest)

4.55%

ROE (Latest)

3.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bearish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 1,357.07 MM

-20What is not working for the Company

RAW MATERIAL COST(Y)

Grown by 61.67% (YoY

OPERATING PROFIT(Q)

Lowest at CNY -207.61 MM

OPERATING PROFIT MARGIN(Q)

Lowest at -3.39 %

PRE-TAX PROFIT(Q)

Lowest at CNY -299.95 MM

NET PROFIT(Q)

Lowest at CNY -304.9 MM

EPS(Q)

Lowest at CNY -0.21

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

Operating Cash Flow

Highest at CNY 1,357.07 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 (CNY MM)

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

Pre-Tax Profit

At CNY -299.95 MM has Fallen at -635.04%

over average net sales of the previous four periods of CNY 56.06 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY -304.9 MM has Fallen at -527.83%

over average net sales of the previous four periods of CNY 71.27 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY -207.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at -3.39 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CNY -299.95 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 -304.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

EPS

Lowest at CNY -0.21

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CNY)

Raw Material Cost

Grown by 61.67% (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