Wangfujing Group Co., Ltd. (600859) 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

Wangfujing Group Co., Ltd.

Why is Wangfujing Group Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 14.33%

The company has been able to generate a Return on Capital Employed (avg) of 14.33% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -4.06% and Operating profit at -4.44% over the last 5 years

The company has declared negative results for the last 4 consecutive quarters

NET PROFIT(HY) At CNY 57.87 MM has Grown at -73.03%
OPERATING CASH FLOW(Y) Lowest at CNY 2,212.19 MM
ROCE(HY) Lowest at -0.18%

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 0.23%, its profits have fallen by -100.3%
At the current price, the company has a high dividend yield of 0.5

Underperformed the market in the last 1 year

The stock has generated a return of 0.23% in the last 1 year, much lower than market (China Shanghai Composite) returns of 22.49%

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 Wangfujing Group Co., Ltd. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wangfujing Group Co., Ltd.

-29.68%

0.10

33.32%

China Shanghai Composite

21.43%

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)

-3.98%

EBIT Growth (5y)

-12.26%

EBIT to Interest (avg)

3.47

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.40

Sales to Capital Employed (avg)

0.52

Tax Ratio

87.51%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

14.33%

ROE (avg)

3.98%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

129

Industry P/E

Price to Book Value

0.59

EV to EBIT

6.55

EV to EBITDA

1.79

EV to Capital Employed

0.32

EV to Sales

0.37

PEG Ratio

Dividend Yield

0.76%

ROCE (Latest)

4.82%

ROE (Latest)

0.46%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

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

13What is working for the Company

NET PROFIT(Q)

At CNY 50.24 MM has Grown at 270.87%

PRE-TAX PROFIT(Q)

Highest at CNY 126.66 MM

-16What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 2,237.28 MM

NET SALES(HY)

At CNY 5,251.65 MM has Grown at -10.35%

ROCE(HY)

Lowest at -0.22%

INTEREST COVERAGE RATIO(Q)

Lowest at 174.2

OPERATING PROFIT(Q)

Lowest at CNY 190.07 MM

RAW MATERIAL COST(Y)

Grown by 5.75% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.95 times

OPERATING PROFIT MARGIN(Q)

Lowest at 6.76 %

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

Net Profit

At CNY 50.24 MM has Grown at 270.87%

over average net sales of the previous four periods of CNY 13.55 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CNY MM)

Pre-Tax Profit

Highest at CNY 126.66 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 126.66 MM has Grown at 59.84%

over average net sales of the previous four periods of CNY 79.24 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

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

Operating Cash Flow

Lowest at CNY 2,237.28 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)

Interest Coverage Ratio

Lowest at 174.2

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at CNY 190.07 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (CNY MM)

Net Sales

At CNY 5,251.65 MM has Grown at -10.35%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit Margin

Lowest at 6.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 2.95 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 5.75% (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