NYSE:BEST

Stock Analysis Report

Executive Summary

BEST Inc. operates as a smart supply chain service provider in the People's Republic of China.

Snowflake

Fundamentals

High growth potential with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

BEST

1.2%

US Logistics

0.07%

US Market


1 Year Return

-1.9%

BEST

-4.9%

US Logistics

8.9%

US Market

Return vs Industry: BEST exceeded the US Logistics industry which returned -4.9% over the past year.

Return vs Market: BEST underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

BESTIndustryMarket
7 Day1.0%1.2%0.07%
30 Day-8.0%-0.4%-0.3%
90 Day6.6%-0.9%-1.6%
1 Year-1.9%-1.9%-2.7%-4.9%11.3%8.9%
3 Yearn/a16.7%8.9%46.3%36.8%
5 Yearn/a26.0%13.0%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.62x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BEST ($5.18) is trading above our estimate of fair value ($1.27)

Significantly Below Fair Value: BEST is trading above our estimate of fair value.


Price To Earnings Ratio

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

PE vs Market: BEST 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 BEST's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BEST is overvalued based on its PB Ratio (3.6x) compared to the US Logistics industry average (3x).


Next Steps

Future Growth

How is BEST forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

76.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BEST is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: BEST is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BEST's is expected to become profitable in the next 3 years.

Revenue vs Market: BEST's revenue (15.8% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: BEST's revenue (15.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BEST's Return on Equity is forecast to be high in 3 years time (22.8%)


Next Steps

Past Performance

How has BEST performed over the past 5 years?

37.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BEST is unprofitable, but has reduced losses over the past 5 years at a rate of 37.2% per year.

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

Earnings vs Industry: BEST is unprofitable, making it difficult to compare its past year earnings growth to the Logistics industry (-9.9%).


Return on Equity

High ROE: BEST has a negative Return on Equity (-8.39%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: BEST is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: BEST is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is BEST's financial position?


Financial Position Analysis

Short Term Liabilities: BEST's short term assets (CN¥8.0B) do not cover its short term liabilities (CN¥9.4B)

Long Term Liabilities: BEST's short term assets (8.0B) exceeds its long term liabilities (3.6B)


Debt to Equity History and Analysis

Debt Level: BEST's debt to equity ratio (63%) is considered high

Reducing Debt: Insufficient data to determine if BEST's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: BEST's debt is covered by short term assets (assets are 3.2x 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: BEST has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if BEST has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if BEST'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 BEST'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 BEST's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Johnny Chou (56yo)

12.8yrs

Tenure

0

Mr. Shao-Ning Chou, also known as Johnny has been Chief Executive Officer of BEST Inc. since 2007. Mr. Chou is the Founder of BEST Inc. He served as Chief Executive Officer of BEST Inc. He served as a Glob ...


Management Age and Tenure

2.8yrs

Average Tenure

47yo

Average Age

Experienced Management: BEST's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

52yo

Average Age

Experienced Board: BEST's board of directors are not considered experienced ( 2.1 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


Management Team

  • Johnny Chou (56yo)

    Chairman & CEO

    • Tenure: 12.8yrs
  • Jimei Liu (47yo)

    Senior Vice President of Human Resources & Administration

    • Tenure: 0yrs
  • Mangli Zhang (62yo)

    Senior VP & GM of Supply Chain Management Service Line

    • Tenure: 0yrs
  • George Chow (51yo)

    Chief Investment & Strategy Officer and Director

    • Tenure: 2.1yrs
  • Shaohua Zhou (46yo)

    Senior VP & GM of Express Service Line

    • Tenure: 0yrs
  • Bo Liu (47yo)

    Senior VP & GM of Store Service Line

    • Tenure: 0yrs
  • Jian Zhou (41yo)

    Senior VP & GM of Global Service Line

    • Tenure: 0yrs
  • Yanbing Zhang (43yo)

    Senior VP of Engineering & GM of Cloud Service Line

    • Tenure: 0yrs
  • Tao Liu (42yo)

    Senior VP & GM of freight service line

    • Tenure: 0yrs
  • Jenny Pan

    Principal Accounting Officer

    • Tenure: 0.3yrs

Board Members

  • Johnny Chou (56yo)

    Chairman & CEO

    • Tenure: 12.8yrs
  • Mark Qiu (55yo)

    Director

    • Tenure: 8.8yrs
  • Justin Chen (45yo)

    Director

    • Tenure: 4.8yrs
  • Quan Hao (60yo)

    Director

    • Tenure: 2.1yrs
  • George Chow (51yo)

    Chief Investment & Strategy Officer and Director

    • Tenure: 2.1yrs
  • Wenbiao Li (52yo)

    Director

    • Tenure: 2.1yrs
  • Lin Wan (44yo)

    Director

    • Tenure: 1.6yrs

Company Information

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


Key Information

  • Name: BEST Inc.
  • Ticker: BEST
  • Exchange: NYSE
  • Founded: 2007
  • Industry: Air Freight and Logistics
  • Sector: Transportation
  • Market Cap: US$2.033b
  • Shares outstanding: 392.51m
  • Website: https://www.best-inc.com

Number of Employees


Location

  • BEST Inc.
  • Huaxing Modern Industry Park
  • 2nd Floor, Block A
  • Hangzhou
  • Zhejiang Province
  • 310013
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BESTNYSE (New York Stock Exchange)YesSPONSORED ADSUSUSDSep 2017

Biography

BEST Inc. operates as a smart supply chain service provider in the People's Republic of China. Its proprietary technology platform enables its ecosystem participants to operate their businesses through var ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:29
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.