Toly Bread Co. Ltd. (603866) 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

Toly Bread Co. Ltd.

Why is Toly Bread Co. Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of -1.49% and Operating profit at -12.30% over the last 5 years

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

ROCE(HY) Lowest at 7.5%
INTEREST COVERAGE RATIO(Q) Lowest at 1,955.75
INVENTORY TURNOVER RATIO(HY) Lowest at 25.03 times

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -10.09% 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 Retailing)

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

Is Toly Bread Co. Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Toly Bread Co. Ltd.

-16.16%

-0.31

22.04%

China Shanghai Composite

13.33%

1.58

14.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-1.49%

EBIT Growth (5y)

-12.30%

EBIT to Interest (avg)

44.31

Debt to EBITDA (avg)

0.35

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

1.01

Tax Ratio

26.22%

Dividend Payout Ratio

76.59%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

15.64%

ROE (avg)

12.64%

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

1.69

EV to EBIT

15.81

EV to EBITDA

10.59

EV to Capital Employed

1.59

EV to Sales

1.70

PEG Ratio

Dividend Yield

2.40%

ROCE (Latest)

10.09%

ROE (Latest)

8.50%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bullish

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

OPERATING CASH FLOW(Y)

Highest at CNY 978.48 MM

RAW MATERIAL COST(Y)

Fallen by -1% (YoY

-19What is not working for the Company

ROCE(HY)

Lowest at 7.5%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,955.75

INVENTORY TURNOVER RATIO(HY)

Lowest at 25.03 times

NET SALES(Q)

Fallen at -11.64%

OPERATING PROFIT(Q)

Lowest at CNY 145.4 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.12 %

PRE-TAX PROFIT(Q)

Fallen at -27.72%

NET PROFIT(Q)

Fallen at -35.08%

Here's what is working for Toly Bread Co. Ltd.

Operating Cash Flow

Highest at CNY 978.48 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CNY MM)

Raw Material Cost

Fallen by -1% (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 Toly Bread Co. Ltd.

Interest Coverage Ratio

Lowest at 1,955.75

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Fallen at -11.64%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 145.4 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 10.12 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Fallen at -27.72%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -35.08%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Inventory Turnover Ratio

Lowest at 25.03 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio