Zhejiang Garden Biopharmaceutical Co., Ltd. (300401) 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

Zhejiang Garden Biopharmaceutical Co., Ltd.

Why is Zhejiang Garden Biopharmaceutical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 14.51% and Operating profit at 5.23% over the last 5 years

Below par performance in long term as well as near term

Along with generating -1.73% returns in the last 1 year, the stock has also underperformed China Shanghai Composite in the last 3 years, 1 year and 3 months

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 Pharmaceuticals & Biotechnology)

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

Is Zhejiang Garden Biopharmaceutical Co., Ltd. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Zhejiang Garden Biopharmaceutical Co., Ltd.

-1.73%

0.67

39.90%

China Shanghai Composite

16.67%

1.14

14.96%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.51%

EBIT Growth (5y)

5.23%

EBIT to Interest (avg)

19.11

Debt to EBITDA (avg)

0.40

Net Debt to Equity (avg)

0.12

Sales to Capital Employed (avg)

0.24

Tax Ratio

14.10%

Dividend Payout Ratio

20.00%

Pledged Shares

Institutional Holding

ROCE (avg)

12.03%

ROE (avg)

12.07%

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

2.32

EV to EBIT

23.41

EV to EBITDA

15.85

EV to Capital Employed

2.17

EV to Sales

6.56

PEG Ratio

0.47

Dividend Yield

0.81%

ROCE (Latest)

9.25%

ROE (Latest)

9.77%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

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

3What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CNY 540.9 MM

-13What is not working for the Company

INTEREST(Q)

At CNY 8.32 MM has Grown at 14.52%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,071.21

RAW MATERIAL COST(Y)

Grown by 5.17% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.76 times

NET SALES(Q)

Lowest at CNY 300.34 MM

OPERATING PROFIT(Q)

Lowest at CNY 89.17 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 29.69 %

NET PROFIT(Q)

Fallen at -27.61%

Here's what is working for Zhejiang Garden Biopharmaceutical Co., Ltd.

Operating Cash Flow

Highest at CNY 540.9 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 Zhejiang Garden Biopharmaceutical Co., Ltd.

Interest

At CNY 8.32 MM has Grown at 14.52%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 1,071.21

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at CNY 300.34 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Net Sales

Fallen at -10.99%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Operating Profit

Lowest at CNY 89.17 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CNY MM)

Operating Profit Margin

Lowest at 29.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Fallen at -27.61%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debtors Turnover Ratio

Lowest at 5.76 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 5.17% (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