Zhejiang Shouxiangu Pharmaceutical Co., Ltd. (603896) 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 Shouxiangu Pharmaceutical Co., Ltd.

Why is Zhejiang Shouxiangu Pharmaceutical Co., Ltd. ?

Poor long term growth as Net Sales has grown by an annual rate of 1.80% and Operating profit at -7.78% over the last 5 years

The company has declared negative results for the last 9 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CNY 217.97 MM
NET SALES(9M) At CNY 430.14 MM has Grown at -9.02%
ROCE(HY) Lowest at 5.83%

Underperformed the market in the last 1 year

The stock has generated a return of 3.00% 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 Pharmaceuticals & Biotechnology)

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

Is Zhejiang Shouxiangu Pharmaceutical Co., Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Shouxiangu Pharmaceutical Co., Ltd.

-9.05%

-0.80

23.58%

China Shanghai Composite

15.17%

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)

1.80%

EBIT Growth (5y)

-7.78%

EBIT to Interest (avg)

12.10

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.27

Sales to Capital Employed (avg)

0.26

Tax Ratio

0.17%

Dividend Payout Ratio

30.64%

Pledged Shares

Institutional Holding

ROCE (avg)

15.92%

ROE (avg)

11.58%

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

1.74

EV to EBIT

43.44

EV to EBITDA

18.16

EV to Capital Employed

1.97

EV to Sales

5.53

PEG Ratio

Dividend Yield

1.35%

ROCE (Latest)

4.54%

ROE (Latest)

5.68%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly 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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-31What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY 217.97 MM

NET SALES(9M)

At CNY 430.14 MM has Grown at -9.02%

ROCE(HY)

Lowest at 5.83%

INTEREST COVERAGE RATIO(Q)

Lowest at 80.59

DEBT-EQUITY RATIO (HY)

Highest at -21.92 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 0.7 times

INTEREST(Q)

Highest at CNY 7.26 MM

PRE-TAX PROFIT(Q)

Fallen at -33.93%

NET PROFIT(Q)

Fallen at -34.57%

Here's what is not working for Zhejiang Shouxiangu Pharmaceutical Co., Ltd.

Operating Cash Flow

Lowest at CNY 217.97 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

At CNY 7.26 MM has Grown at 15.18%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Interest Coverage Ratio

Lowest at 80.59

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

At CNY 430.14 MM has Grown at -9.02%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (CNY MM)

Interest

Highest at CNY 7.26 MM

in the last five periods and Increased by 15.18% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CNY MM)

Pre-Tax Profit

Fallen at -33.93%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CNY MM)

Net Profit

Fallen at -34.57%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CNY MM)

Debt-Equity Ratio

Highest at -21.92 %

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

Inventory Turnover Ratio

Lowest at 0.7 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio