China Dongxiang (Group) Company (CDGXY) AI Stock Analysis

• Market Cap: $351.54M
• Dividend Yield: 2.88%
• Average Volume (3M): 0.00
• Price to Earnings (P/E): 12.2
• Beta (1Y): 0.40
• Revenue Growth: -4.26%
• EPS Growth: N/A
• Country: US
• Employees: 350
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.08
• Shares Outstanding: 117,901,460
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -0.95
• Enterprise Value/Revenue: -0.19
• Enterprise Value/Gross Profit: -0.29
• Enterprise Value/Ebitda: 1.55
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 54 Neutral
• Price Target: ―

China Dongxiang's overall stock score reflects significant financial challenges, particularly in profitability and cash flow generation. While the company benefits from a strong balance sheet with low leverage, ongoing losses and a negative P/E ratio weigh on the valuation. Technical indicators suggest neutral to slightly bearish momentum, adding to the cautious outlook. The dividend yield provides some investor returns, but the company's financial struggles remain a primary concern.

China Dongxiang (Group) Company Business Overview & Revenue Model

Company Description

China Dongxiang (Group) Co., Ltd., together with its subsidiaries, designs, develops, markets, and sells sport-related apparel, footwear, and accessories in the People's Republic of China and internationally. The company offers its products under the Kappa and Phenix brands. It is also involved in the retail sale of sportswear through a network of retail shops and outlets, as well as online. In addition, the company invests in various financial assets and treasury products issued by commercial banks; designs and sells children's clothing products; engages in the hotel management and tourism; and develops and operates real estate properties. As of March 31, 2022, the company had 1,375 Kappa stores. China Dongxiang (Group) Co., Ltd. was founded in 2002 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

China Dongxiang (Group) Company makes money through its core business of designing, marketing, and distributing sportswear products under licensed and owned brands, with a prominent focus on the Kappa brand. The company's revenue model includes direct sales through its retail and online platforms, as well as wholesale distribution to third-party retailers. A key revenue stream is the sale of branded apparel and footwear, which are distributed through a network of retail stores and e-commerce platforms. Additionally, the company may engage in strategic partnerships and collaborations to enhance brand visibility and market reach. Licensing agreements and brand management services also contribute to its revenue. CDGXY's earnings are significantly influenced by the brand's market positioning and consumer demand for sports fashion in China and other targeted regions.

China Dongxiang (Group) Company Financial Statement Overview

Summary

China Dongxiang faces notable financial challenges, particularly in profitability and cash flow generation. While the company maintains a strong balance sheet with low leverage and substantial equity, its income statement reveals ongoing losses and negative profit margins. The cash flow situation shows some improvement in operating cash flow management, but free cash flow generation remains a concern. Future efforts should focus on improving operational efficiency and profitability to enhance overall financial health.

Income Statement

The income statement reveals significant challenges. The company experienced a decline in revenue from 2022 to 2024, with a negative revenue growth rate of 8.96% in 2023 and a slight growth of 3.87% in 2024. The gross profit margin improved from 63.36% to 68.36% in 2024, indicating cost management improvements. However, the net profit margin was negative at -36.64% for 2024, reflecting substantial losses. EBIT and EBITDA are also negative, highlighting operational inefficiencies and profitability struggles.

Balance Sheet

The balance sheet presents a relatively stable position. The debt-to-equity ratio is low at 0.004, indicating minimal leverage and a strong equity base. The return on equity (ROE) is negative at -7.05% for 2024 due to net losses, but the equity ratio is high at 93.2%, showing a strong capital structure. The company has a substantial cash position, which provides a buffer against short-term liabilities.

Cash Flow

The cash flow statement shows mixed results. The operating cash flow to net income ratio improved to 0.31 in 2024, indicating better cash management relative to net income. However, free cash flow growth was negative from 2023 to 2024, decreasing by 52.6%, which suggests challenges in generating free cash flow. The free cash flow to net income ratio is positive at 0.22, indicating some ability to generate cash despite net losses.

Breakdown	TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement
Total Revenue	1.72B	1.74B	1.68B	1.92B	1.97B	1.84B
Gross Profit	1.17B	1.19B	1.06B	1.12B	1.32B	1.11B
EBITDA	-216.23M	-655.84M	176.17M	-1.86B	2.12B	562.68M
Net Income	-92.68M	-639.36M	115.00M	-1.73B	1.81B	366.33M
Balance Sheet
Total Assets	9.98B	9.74B	10.58B	10.49B	12.64B	11.69B
Cash, Cash Equivalents and Short-Term Investments	4.23B	3.83B	3.97B	3.86B	5.38B	5.46B
Total Debt	47.10M	38.90M	57.56M	232.81M	216.24M	339.41M
Total Liabilities	840.97M	665.80M	911.38M	1.13B	1.10B	1.07B
Stockholders Equity	9.14B	9.07B	9.67B	9.35B	11.53B	10.61B
Cash Flow
Free Cash Flow	-17.65M	143.47M	30.27M	-262.57M	62.77M	-113.82M
Operating Cash Flow	40.82M	198.90M	101.60M	-211.19M	66.74M	-110.04M
Investing Cash Flow	-424.84M	-923.98M	1.18B	276.79M	475.94M	1.69B
Financing Cash Flow	-105.25M	-109.81M	-307.86M	-334.57M	-673.20M	-325.08M

China Dongxiang (Group) Company Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDGXY, the sentiment is Neutral. The current price of 3.15 is below the 20-day moving average (MA) of 3.24, below the 50-day MA of 3.19, and above the 200-day MA of 2.64, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 39.43 is Neutral, neither overbought nor oversold. The STOCH value of 17.51 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CDGXY.

China Dongxiang (Group) Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RL	77 Outperform	$20.18B	26.58	32.55%	1.04%	9.61%	21.14%
COLM	68 Neutral	$2.88B	13.30	12.93%	2.21%	0.81%	4.86%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HBI	55 Neutral	$2.40B	15.27	154.00%	―	-27.88%	―
CDGXY	54 Neutral	$351.54M	12.24	2.27%	2.88%	-4.26%	―
UA	47 Neutral	$2.01B	19.99	5.50%	―	-8.02%	―
UAA	46 Neutral	$2.00B	20.77	5.50%	―	-8.02%	―