Zhejiang Red Dragonfly Footwear Co., Ltd. (603116) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Zhejiang Red Dragonfly Footwear Co., Ltd.

Why is Zhejiang Red Dragonfly Footwear Co., Ltd. ?

Poor Management Efficiency with a low ROCE of 0.47%

The company has been able to generate a Return on Capital Employed (avg) of 0.47% 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 -4.53% and Operating profit at -277.78% over the last 5 years

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

NET SALES(HY) At CNY 1,019.98 MM has Grown at -14.12%
PRE-TAX PROFIT(Q) At CNY 6.49 MM has Fallen at -74.38%
NET PROFIT(Q) At CNY 4.11 MM has Fallen at -80.76%

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 -24.69%, its profits have fallen by -536.1%
At the current price, the company has a high dividend yield of 4.3

Underperformed the market in the last 1 year

Even though the market (China Shanghai Composite) has generated returns of 14.77% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -24.69% returns

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 Footwear)

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

Is Zhejiang Red Dragonfly Footwear Co., Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Zhejiang Red Dragonfly Footwear Co., Ltd.

-24.69%

0.66

45.93%

China Shanghai Composite

14.77%

1.01

14.58%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-4.53%

EBIT Growth (5y)

-277.78%

EBIT to Interest (avg)

-3.59

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.42

Sales to Capital Employed (avg)

0.68

Tax Ratio

65.49%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

0.47%

ROE (avg)

0.88%

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

1.26

EV to EBIT

-17.60

EV to EBITDA

45.35

EV to Capital Employed

1.45

EV to Sales

1.11

PEG Ratio

Dividend Yield

4.34%

ROCE (Latest)

-8.23%

ROE (Latest)

-4.58%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -10.54% (YoY

-26What is not working for the Company

NET SALES(HY)

At CNY 1,019.98 MM has Grown at -14.12%

PRE-TAX PROFIT(Q)

At CNY 6.49 MM has Fallen at -74.38%

NET PROFIT(Q)

At CNY 4.11 MM has Fallen at -80.76%

OPERATING CASH FLOW(Y)

Lowest at CNY 148.62 MM

ROCE(HY)

Lowest at -3.01%

CASH AND EQV(HY)

Lowest at CNY 2,751.38 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.78%

Here's what is working for Zhejiang Red Dragonfly Footwear Co., Ltd.

Raw Material Cost

Fallen by -10.54% (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 Zhejiang Red Dragonfly Footwear Co., Ltd.

Pre-Tax Profit

At CNY 6.49 MM has Fallen at -74.38%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CNY MM)

Net Profit

At CNY 4.11 MM has Fallen at -80.76%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CNY MM)

Net Sales

At CNY 1,019.98 MM has Grown at -14.12%

Year on Year (YoY)

MOJO Watch

Near term sales trend is very negative

Net Sales (CNY MM)

Operating Cash Flow

Lowest at CNY 148.62 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CNY MM)

Cash and Eqv

Lowest at CNY 2,751.38 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 2.78%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio