Wen's Foodstuff Group Co., Ltd. (300498) 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

Wen's Foodstuff Group Co., Ltd.

Why is Wen's Foodstuff Group 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 5.58% and Operating profit at -10.61% 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 11.55% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 5.58% and Operating profit at -10.61% over the last 5 years

With a fall in Net Sales of -4.88%, the company declared Very Negative results in Sep 25

The company has declared negative results in Jan 70 after 4 consecutive negative quarters
INTEREST COVERAGE RATIO(Q) Lowest at 942.9
PRE-TAX PROFIT(Q) At CNY 1,862.55 MM has Fallen at -65.07%
NET PROFIT(Q) At CNY 1,681.74 MM has Fallen at -67.68%

With ROE of 27.79%, it has a fair valuation with a 2.98 Price to Book Value

Over the past year, while the stock has generated a return of 1.94%, its profits have risen by 1958.6% ; the PEG ratio of the company is 0
At the current price, the company has a high dividend yield of 1.7

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 Wen's Foodstuff Group Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Wen's Foodstuff Group Co., Ltd.

1.2%

-0.97

22.72%

China Shanghai Composite

15.17%

1.02

14.86%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.58%

EBIT Growth (5y)

-10.61%

EBIT to Interest (avg)

6.52

Debt to EBITDA (avg)

4.40

Net Debt to Equity (avg)

0.27

Sales to Capital Employed (avg)

1.58

Tax Ratio

0.09%

Dividend Payout Ratio

25.14%

Pledged Shares

Institutional Holding

ROCE (avg)

14.93%

ROE (avg)

11.55%

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

2.98

EV to EBIT

10.85

EV to EBITDA

7.58

EV to Capital Employed

2.56

EV to Sales

1.27

PEG Ratio

0.01

Dividend Yield

1.66%

ROCE (Latest)

23.55%

ROE (Latest)

27.79%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Sideways

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bearish

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

7What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 15,141.43 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 112.02%

DIVIDEND PER SHARE(HY)

Highest at CNY 20.48

-20What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 942.9

PRE-TAX PROFIT(Q)

At CNY 1,862.55 MM has Fallen at -65.07%

NET PROFIT(Q)

At CNY 1,681.74 MM has Fallen at -67.68%

OPERATING PROFIT(Q)

Lowest at CNY 1,885.04 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 7.27 %

RAW MATERIAL COST(Y)

Grown by 58.93% (YoY

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

Operating Cash Flow

Highest at CNY 15,141.43 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)

Dividend per share

Highest at CNY 20.48

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CNY)

Dividend Payout Ratio

Highest at 112.02%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Interest Coverage Ratio

Lowest at 942.9 and Fallen

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit

At CNY 1,862.55 MM has Fallen at -65.07%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 1,681.74 MM has Fallen at -67.68%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Operating Profit

Lowest at CNY 1,885.04 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)

Operating Profit Margin

Lowest at 7.27 % and Fallen

In each period in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Raw Material Cost

Grown by 58.93% (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