NasdaqCM:TYHT

Stock Analysis Report

Executive Summary

Shineco, Inc., through its subsidiaries, produces, distributes, and sells health and well-being focused plant-based products in China.

Rewards

Trading at 86.3% below its fair value

Risk Analysis

Earnings have declined by -18.7% per year over past 5 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($18M)



Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Shineco's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.6%

TYHT

3.0%

US Personal Products

1.2%

US Market


1 Year Return

28.0%

TYHT

48.7%

US Personal Products

24.2%

US Market

Return vs Industry: TYHT underperformed the US Personal Products industry which returned 47.6% over the past year.

Return vs Market: TYHT exceeded the US Market which returned 24.4% over the past year.


Shareholder returns

TYHTIndustryMarket
7 Day-0.6%3.0%1.2%
30 Day-36.0%4.7%3.5%
90 Day21.9%13.8%11.7%
1 Year28.0%28.0%50.7%48.7%26.9%24.2%
3 Year-82.8%-82.8%78.7%69.9%53.0%43.2%
5 Yearn/a92.8%73.1%75.3%56.0%

Price Volatility Vs. Market

How volatile is Shineco's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Shineco undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TYHT ($0.65) is trading below our estimate of fair value ($4.73)

Significantly Below Fair Value: TYHT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: TYHT is unprofitable, so we can't compare its PE Ratio to the Personal Products industry average.

PE vs Market: TYHT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TYHT is good value based on its PB Ratio (0.3x) compared to the US Personal Products industry average (2.6x).


Next Steps

Future Growth

How is Shineco forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

15.2%

Forecasted Household 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 Shineco 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 Shineco performed over the past 5 years?

-18.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TYHT is currently unprofitable.

Growing Profit Margin: TYHT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TYHT is unprofitable, and losses have increased over the past 5 years at a rate of -18.7% per year.

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

Earnings vs Industry: TYHT is unprofitable, making it difficult to compare its past year earnings growth to the Personal Products industry (21.4%).


Return on Equity

High ROE: TYHT has a negative Return on Equity (-2.19%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Shineco's financial position?


Financial Position Analysis

Short Term Liabilities: TYHT's short term assets ($58.9M) exceed its short term liabilities ($10.0M).

Long Term Liabilities: TYHT's short term assets ($58.9M) exceed its long term liabilities ($628.6K).


Debt to Equity History and Analysis

Debt Level: TYHT's debt to equity ratio (3.3%) is considered satisfactory.

Reducing Debt: TYHT's debt to equity ratio has reduced from 7% to 3.3% over the past 5 years.

Debt Coverage: TYHT's debt is well covered by operating cash flow (265.6%).

Interest Coverage: Insufficient data to determine if TYHT's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: TYHT's debt is covered by short term assets (assets are 25.5x debt).


Next Steps

Dividend

What is Shineco's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate TYHT'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 TYHT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TYHT'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 TYHT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Shineco's salary, the management and board of directors tenure and is there insider trading?

0.2yrs

Average board tenure


CEO

Yuying Zhang (67yo)

0yrs

Tenure

US$151,130

Compensation

Mr. Yuying Zhang has been the Chairman of Shineco Inc. since 2011 and serves as its Chief Executive Officer and served as a President. Mr. Zhang served as Chairman and Chief Executive Officer of Tenet-Jove ...


CEO Compensation Analysis

Compensation vs Market: Yuying's total compensation ($USD151.13K) is below average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Yuying's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

0.2yrs

Average Tenure

51yo

Average Age

Experienced Board: TYHT's board of directors are not considered experienced ( 0.2 years average tenure), which suggests a new board.


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 9.5%.


Management Team

  • Yuying Zhang (67yo)

    Chairman & CEO

    • Compensation: US$151.13k
  • Sam Wang (34yo)

    CFO & Director

    • Tenure: 3.6yrs
    • Compensation: US$109.60k

Board Members

  • Harry Edelson (85yo)

    Independent Director

    • Tenure: 0.3yrs
  • Yuying Zhang (67yo)

    Chairman & CEO

    • Compensation: US$151.13k
  • Baolin Li (64yo)

    Director

    • Tenure: 0.2yrs
  • Sam Wang (34yo)

    CFO & Director

    • Tenure: 3.6yrs
    • Compensation: US$109.60k
  • Zhen Li (38yo)

    Independent Director

    • Tenure: 0.2yrs
  • Yanzeng An (40yo)

    Independent Director

    • Tenure: 0.2yrs
  • He Cen (51yo)

    Independent Director

    • Tenure: 0.2yrs

Company Information

Shineco, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Shineco, Inc.
  • Ticker: TYHT
  • Exchange: NasdaqCM
  • Founded: 1997
  • Industry: Personal Products
  • Sector: Household
  • Market Cap: US$17.659m
  • Shares outstanding: 27.33m
  • Website: https://www.tianyiluobuma.com

Number of Employees


Location

  • Shineco, Inc.
  • Building T5, DaZu Square
  • Room 1001
  • Beijing
  • 100176
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SHQBST (Boerse-Stuttgart)YesCommon StockDEEURSep 2016
TYHTNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDSep 2016

Biography

Shineco, Inc., through its subsidiaries, produces, distributes, and sells health and well-being focused plant-based products in China. It processes and distributes traditional Chinese herbal medicine products, as well as other pharmaceutical products directly to individual customers. The company also plants, processes, and distributes green and organic vegetables and fruits; and grows, cultivates, and sells yew trees that are used for the production of anti-cancer medication, as well as ornamental bonsai trees for purifying indoor air quality. In addition, it offers domestic and international logistics services for agricultural products. Further, the company develops and distributes specialized fabrics, textiles, health supplements, and other byproducts derived from an indigenous Chinese plant Apocynum Venetum. The company sells its Chinese medicinal products and western medicines through wholesale customers; and its 13 Ankang retail pharmacies operating under the Sunsimiao Pharmacies name, as well as 66 pharmacies operated by third parties. Shineco, Inc. sells its decoction pieces on the Anhui Bozhou Chinese medicine transaction market to medical materials companies and Chinese patent medicine factories. The company sells its Luobuma textile products online through third party e-commerce Websites; and yew trees and agricultural products primarily through its sales personnel, and group and institutional sales. The company was formerly known as Beijing Tenet Jove Technological Development Co., Ltd. and changed its name to Shineco, Inc. in June 2005. Shineco, Inc. was founded in 1997 and is based in Beijing, China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/21 01:11
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2019/06/30


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.