Zhejiang Starry Pharmaceutical Co., Ltd. (603520) 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 Starry Pharmaceutical Co., Ltd.

Why is Zhejiang Starry Pharmaceutical 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 11.74% and Operating profit at -45.95% 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 6.49% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 11.74% and Operating profit at -45.95% over the last 5 years

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

CASH AND EQV(HY) Lowest at CNY 690.72 MM
NET SALES(Q) Lowest at CNY 447.26 MM

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 14.49%, its profits have fallen by -232%
At the current price, the company has a high dividend yield of 1.1

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 Starry Pharmaceutical Co., Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Zhejiang Starry Pharmaceutical Co., Ltd.

32.21%

-0.14

35.78%

China Shanghai Composite

20.36%

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)

11.74%

EBIT Growth (5y)

-45.95%

EBIT to Interest (avg)

2.48

Debt to EBITDA (avg)

7.15

Net Debt to Equity (avg)

0.88

Sales to Capital Employed (avg)

0.45

Tax Ratio

22.47%

Dividend Payout Ratio

1,287.55%

Pledged Shares

Institutional Holding

ROCE (avg)

5.52%

ROE (avg)

6.49%

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

1.67

EV to EBIT

366.34

EV to EBITDA

34.70

EV to Capital Employed

1.35

EV to Sales

2.78

PEG Ratio

Dividend Yield

1.19%

ROCE (Latest)

0.37%

ROE (Latest)

-1.12%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

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

14What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -43.87% (YoY

PRE-TAX PROFIT(Q)

Highest at CNY 28.11 MM

NET PROFIT(Q)

Highest at CNY 20.95 MM

EPS(Q)

Highest at CNY 0.05

-7What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CNY -153.54 MM

CASH AND EQV(HY)

Lowest at CNY 723.35 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 1.77 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.28 times

OPERATING PROFIT MARGIN(Q)

Lowest at 6.76 %

Here's what is working for Zhejiang Starry Pharmaceutical Co., Ltd.

Pre-Tax Profit

Highest at CNY 28.11 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Pre-Tax Profit

At CNY 28.11 MM has Grown at 68.98%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CNY MM)

Net Profit

Highest at CNY 20.95 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CNY MM)

EPS

Highest at CNY 0.05

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CNY)

Raw Material Cost

Fallen by -43.87% (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 Starry Pharmaceutical Co., Ltd.

Operating Cash Flow

Lowest at CNY -153.54 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)

Operating Profit Margin

Lowest at 6.76 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Cash and Eqv

Lowest at CNY 723.35 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Inventory Turnover Ratio

Lowest at 1.77 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 3.28 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio