Wellhope Foods Co., Ltd. (603609) 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

Wellhope Foods Co., Ltd.

Why is Wellhope Foods Co., Ltd. ?

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 10.81% and Operating profit at -28.24% 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 7.56% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 10.81% and Operating profit at -28.24% over the last 5 years

The company has declared negative results in Jan 70 after 3 consecutive negative quarters

INTEREST(HY) At CNY 116.27 MM has Grown at 28.65%
RAW MATERIAL COST(Y) Grown by 43.72% (YoY)
DEBT-EQUITY RATIO (HY) Highest at 82.72 %

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -3.56% 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 FMCG)

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

Is Wellhope Foods Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wellhope Foods Co., Ltd.

-100.0%

0.21

22.30%

China Shanghai Composite

20.18%

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)

7.57%

EBIT Growth (5y)

-44.42%

EBIT to Interest (avg)

4.33

Debt to EBITDA (avg)

3.96

Net Debt to Equity (avg)

0.52

Sales to Capital Employed (avg)

3.02

Tax Ratio

16.47%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

5.59%

ROE (avg)

7.56%

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

0.87

EV to EBIT

168.46

EV to EBITDA

14.69

EV to Capital Employed

0.93

EV to Sales

0.29

PEG Ratio

Dividend Yield

0.95%

ROCE (Latest)

0.55%

ROE (Latest)

-1.38%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Bearish

OBV

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

2What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -5.6% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 23.84 times

-31What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 696.5 MM

INTEREST(HY)

At CNY 106.62 MM has Grown at 18.38%

PRE-TAX PROFIT(Q)

At CNY 29.17 MM has Fallen at -78.74%

NET PROFIT(Q)

At CNY 8.55 MM has Fallen at -92.71%

INVENTORY TURNOVER RATIO(HY)

Lowest at 9.79 times

INTEREST COVERAGE RATIO(Q)

Lowest at 160.25

DEBT-EQUITY RATIO (HY)

Highest at 90.77 %

OPERATING PROFIT(Q)

Lowest at CNY 83.95 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 0.94 %

Here's what is working for Wellhope Foods Co., Ltd.

Debtors Turnover Ratio

Highest at 23.84 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by -5.6% (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 Wellhope Foods Co., Ltd.

Pre-Tax Profit

At CNY 29.17 MM has Fallen at -78.74%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 8.55 MM has Fallen at -92.71%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Interest

At CNY 106.62 MM has Grown at 18.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Operating Cash Flow

Lowest at CNY 696.5 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 160.25

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 9.79 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Profit

Lowest at CNY 83.95 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 0.94 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debt-Equity Ratio

Highest at 90.77 %

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