DB:04CN

Stock Analysis Report

Executive Summary

China Jo-Jo Drugstores, Inc., together with its subsidiaries, operates as a retailer and distributor of pharmaceutical and other healthcare products in the People’s Republic of China.

Risk Analysis

Earnings have declined by -9.36% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Adequate balance sheet with weak fundamentals.


Similar Companies

Share Price & News

How has China Jo-Jo Drugstores's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 04CN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.2%

04CN

-0.1%

DE Consumer Retailing

0.7%

DE Market


1 Year Return

-16.6%

04CN

2.5%

DE Consumer Retailing

15.6%

DE Market

Return vs Industry: 04CN underperformed the German Consumer Retailing industry which returned 4.8% over the past year.

Return vs Market: 04CN underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

04CNIndustryMarket
7 Day-3.2%-0.1%0.7%
30 Day-3.2%-1.2%1.7%
90 Day33.6%-0.2%6.3%
1 Year-16.6%-16.6%6.6%2.5%19.2%15.6%
3 Year-7.8%-7.8%3.6%-6.7%18.3%7.9%
5 Year-34.9%-34.9%9.8%-7.2%26.8%9.4%

Price Volatility Vs. Market

How volatile is China Jo-Jo Drugstores's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is China Jo-Jo Drugstores undervalued compared to its fair value and its price relative to the market?

2.39x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 04CN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 04CN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 04CN is unprofitable, so we can't compare its PE Ratio to the Consumer Retailing industry average.

PE vs Market: 04CN is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 04CN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 04CN is overvalued based on its PB Ratio (2.5x) compared to the XE Consumer Retailing industry average (1.6x).


Next Steps

Future Growth

How is China Jo-Jo Drugstores forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.2%

Forecasted Consumer Retailing industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as China Jo-Jo Drugstores has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has China Jo-Jo Drugstores performed over the past 5 years?

-9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 04CN is currently unprofitable.

Growing Profit Margin: 04CN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 04CN is unprofitable, and losses have increased over the past 5 years at a rate of -9.4% per year.

Accelerating Growth: Unable to compare 04CN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 04CN is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (0.5%).


Return on Equity

High ROE: 04CN has a negative Return on Equity (-12.69%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is China Jo-Jo Drugstores's financial position?


Financial Position Analysis

Short Term Liabilities: 04CN's short term assets ($56.5M) exceed its short term liabilities ($53.2M).

Long Term Liabilities: 04CN's short term assets ($56.5M) exceed its long term liabilities ($12.3M).


Debt to Equity History and Analysis

Debt Level: 04CN's debt to equity ratio (103.4%) is considered high.

Reducing Debt: 04CN's debt to equity ratio has increased from 85% to 103.4% over the past 5 years.


Balance Sheet

Inventory Level: 04CN has a high level of physical assets or inventory.

Debt Coverage by Assets: 04CN's debt is covered by short term assets (assets are 2.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 04CN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 04CN has sufficient cash runway for 2.2 years if free cash flow continues to reduce at historical rates of -94.2% each year.


Next Steps

Dividend

What is China Jo-Jo Drugstores's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 04CN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 04CN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 04CN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 04CN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 04CN's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of China Jo-Jo Drugstores's salary, the management and board of directors tenure and is there insider trading?

4.9yrs

Average management tenure


CEO

Lei Liu (55yo)

10.3yrs

Tenure

US$53,676

Compensation

Mr. Liu Lei, M.D., has been the Chief Executive Officer of China Jo-Jo Drugstores, Inc. since September 17, 2009. He is one of the three founders of HJ Group. From December 1997 to August 2003, Mr. Liu wor ...


CEO Compensation Analysis

Compensation vs Market: Lei's total compensation ($USD53.68K) is below average for companies of similar size in the German market ($USD425.50K).

Compensation vs Earnings: Lei's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.9yrs

Average Tenure

44yo

Average Age

Experienced Management: 04CN's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

54.5yo

Average Age

Experienced Board: 04CN's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.7%.


Management Team

  • Lei Liu (55yo)

    Chairman & CEO

    • Tenure: 10.3yrs
    • Compensation: US$53.68k
  • Frank Zhao (43yo)

    Chief Financial Officer

    • Tenure: 8.4yrs
    • Compensation: US$88.00k
  • Yan Liu (29yo)

    Secretary

    • Tenure: 1.3yrs
  • Wei Hu (45yo)

    Chief Operating Officer

    • Tenure: 1.2yrs
  • Steve Liu

    Investor Relations Director


    Board Members

    • Li Qi (47yo)

      Director

      • Tenure: 10.3yrs
      • Compensation: US$44.73k
    • Lei Liu (55yo)

      Chairman & CEO

      • Tenure: 10.3yrs
      • Compensation: US$53.68k
    • Jiangliang He (56yo)

      Independent Director

      • Tenure: 1.3yrs
      • Compensation: US$3.09k
    • Genghua Gu (69yo)

      Independent Director

      • Tenure: 5.8yrs
      • Compensation: US$6.00k
    • Caroline Wang (32yo)

      Independent Director

      • Tenure: 2.8yrs
      • Compensation: US$12.08k
    • Pingfan Wu (54yo)

      Independent Director

      • Tenure: 1.3yrs
      • Compensation: US$3.60k

    Company Information

    China Jo-Jo Drugstores, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: China Jo-Jo Drugstores, Inc.
    • Ticker: 04CN
    • Exchange: DB
    • Founded:
    • Industry: Drug Retail
    • Sector: Consumer Retailing
    • Market Cap: US$55.334m
    • Listing Market Cap: US$49.928m
    • Shares outstanding: 32.94m
    • Website: https://www.jiuzhou-drugstore.com

    Number of Employees


    Location

    • China Jo-Jo Drugstores, Inc.
    • Hai Wai Hai Tongxin Mansion
    • Floor 6
    • Hangzhou
    • Zhejiang Province
    • 310008
    • China

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    CJJDNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDSep 2009
    04CNDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 2009

    Biography

    China Jo-Jo Drugstores, Inc., together with its subsidiaries, operates as a retailer and distributor of pharmaceutical and other healthcare products in the People’s Republic of China. The company operates through four segments: Retail Drugstores, Online Pharmacy, Drug Wholesale, and Herb Farming. Its stores provide various pharmaceutical products, including prescription and over-the-counter drugs, nutritional supplements, traditional Chinese medicines (TCM), personal and family care products, and medical devices, as well as convenience products, such as consumable, seasonal, and promotional items. The company also operates licensed doctors of Western medicine and TCM on site for consultation, examination, and treatment of common ailments at scheduled hours. In addition, it operates dada360.com, an online drugstore that retails OTC drugs and nutritional supplements, as well as sells products through third-party platforms, such as Tmall, JD.com, and Amazon.com. Further, the company distributes third-party pharmaceutical products primarily to trading companies, as well as cultivates and wholesales herbs used for TCM. As of March 31, 2019, it had 121 retail pharmacies under the Jiuzhou Grand Pharmacy name; and 8 drugstores controlled by Hangzhou Jiuzhou Grand Pharmacy. China Jo-Jo Drugstores, Inc. is headquartered in Hangzhou, the People’s Republic of China. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/20 21:46
    End of Day Share Price2020/01/20 00:00
    Earnings2019/09/30
    Annual Earnings2019/03/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.