Sinopharm Group Co (SHTDY) AI Stock Analysis

• Market Cap: $7.33B
• Dividend Yield: 4.01%
• Average Volume (3M): 203.00
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.30
• Revenue Growth: -3.62%
• EPS Growth: -23.24%
• Country: US
• Employees: 108,217
• Sector: Healthcare
• Sector Strength: 53
• Industry: Medical - Distribution
• EPS (TTM): 1.57
• Shares Outstanding: 268,362,150
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 203
• PEG Ratio: 0.69
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $13.00 ▲(10.92%Upside)

The overall stock score for Sinopharm Group is driven primarily by its strong financial performance and attractive valuation. While technical indicators suggest a neutral to slightly positive outlook, the lack of growth in free cash flow and absence of recent earnings call data limits the score. The stock presents an attractive valuation, but growth and leverage management remain key areas for improvement.

Sinopharm Group Co Business Overview & Revenue Model

Company Description

Sinopharm Group Co. Ltd., together with its subsidiaries, engages in the wholesale and retail of pharmaceutical and medical devices and healthcare products in the People's Republic of China. The company operates through four segments: Pharmaceutical Distribution, Medical Devices, Retail Pharmacy, and Other Business. The Pharmaceutical Distribution segment distributes pharmaceutical products to hospitals, other distributors, retail drug stores, and clinics. This segment also offers distribution, logistics, and other value-added services for domestic and international pharmaceutical and healthcare products manufacturers, and other suppliers. The Medical Devices segment distributes medical devices. The Retail Pharmacy segment operates and franchises a network of retail drug stores. As of December 31, 2021, this segment had 10,259 retail pharmacies. The Other Business segment engages in the production and sale of pharmaceutical products, chemical reagents, and laboratory supplies. The company also rents and manages properties; distributes medical instruments, Chinese herbal medicines, antibiotics, and biological products; and offers information technology development and medicine consultation, investment, goods and technology import and export, business consultation, health consultation, medical consultation, market information consultation and investigation, and convention and exhibition services. In addition, it manages medical project investment, consulting, and technology training activities. Sinopharm Group Co. Ltd. has a strategic partnership with I-Mab to enhance its commercial capabilities and commercialization transformation. The company was founded in 2003 and is headquartered in Shanghai, the People's Republic of China. Sinopharm Group Co. Ltd. is a subsidiary of Sinopharm Industrial Investment Co., Ltd.

How the Company Makes Money

Sinopharm Group Co., Ltd. generates revenue through multiple streams, with the primary source being the distribution of pharmaceuticals and medical devices. The company leverages its extensive distribution network to supply hospitals, clinics, and pharmacies across China, ensuring a steady flow of income from wholesale operations. Additionally, Sinopharm operates a chain of retail pharmacies, which contributes to its revenue by directly selling medicines and healthcare products to consumers. The company also benefits from its involvement in the research and development sector, where it develops and licenses new pharmaceutical products. Strategic partnerships and collaborations with domestic and international pharmaceutical companies further enhance its market reach and revenue potential.

Sinopharm Group Co Financial Statement Overview

Summary

Sinopharm Group exhibits solid financial health with stable revenue and profitability metrics despite a slight decline in revenue growth. The balance sheet reflects a balanced financing approach, although there's room to enhance equity strength. The cash flow position remains strong, but the recent decline in free cash flow growth warrants attention.

Income Statement

Sinopharm Group has demonstrated a stable revenue stream over the years, with a slight decline in the most recent year. The gross profit margin remained strong at approximately 7.57%, and the net profit margin was at 1.21% for 2024. The EBIT margin stood at 2.77%, and the EBITDA margin at 3.67%, indicating efficient operations. However, the revenue growth rate showed a small decline of 2.02% from the previous year, which slightly impacts the overall score.

Balance Sheet

The company maintains a reasonable debt-to-equity ratio of 0.97, indicating a balance between using debt and equity for financing. The return on equity (ROE) was calculated to be 8.94%, suggesting effective use of equity. The equity ratio was 20.08%, which implies a moderate reliance on liabilities. Overall, the balance sheet shows stability, but the equity position could be strengthened to reduce leverage risks.

Cash Flow

The cash flow statement reveals a decrease in free cash flow from the previous year, resulting in a negative free cash flow growth rate of -35.47%. The operating cash flow to net income ratio is 1.64, demonstrating effective cash generation from operations. However, the free cash flow to net income ratio of 1.36 suggests some pressure on maintaining cash reserves. While cash flow generation remains robust, the decline in free cash flow growth is a concern.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
590.35B	584.51B	596.57B	552.15B	521.05B	456.41B
	Gross Profit
47.18B	44.26B	48.51B	47.43B	44.05B	40.32B
	EBIT
19.74B	16.19B	20.21B	20.60B	19.71B	17.76B
	EBITDA
22.29B	21.47B	26.90B	26.25B	24.68B	22.62B
	Net Income Common Stockholders
8.65B	7.05B	9.05B	8.53B	7.76B	7.19B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
43.33B	54.31B	63.81B	55.22B	43.54B	50.22B
	Total Assets
429.58B	392.83B	383.39B	364.78B	335.41B	311.24B
	Total Debt
101.06B	76.39B	73.78B	69.59B	68.37B	68.53B
	Net Debt
57.72B	22.07B	9.97B	14.37B	24.84B	18.35B
	Total Liabilities
307.15B	266.14B	263.08B	254.71B	235.76B	221.29B
	Stockholders Equity
75.54B	78.88B	74.58B	68.07B	61.89B	56.36B
Cash Flow		Free Cash Flow
17.00B	9.58B	14.84B	18.55B	7.05B	9.07B
	Operating Cash Flow
19.51B	11.55B	17.17B	20.96B	9.31B	11.15B
	Investing Cash Flow
-1.04B	-3.75B	-944.53M	-3.59B	-1.27B	-2.20B
	Financing Cash Flow
21.55B	-17.29B	-7.64B	-5.69B	-14.69B	2.03B

Sinopharm Group Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.72
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHTDY, the sentiment is Positive. The current price of 11.72 is above the 20-day moving average (MA) of 11.62, above the 50-day MA of 11.41, and below the 200-day MA of 12.14, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 53.35 is Neutral, neither overbought nor oversold. The STOCH value of -28.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHTDY.

Sinopharm Group Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COR	78 Outperform	$56.69B	33.95	161.58%	0.75%	12.18%	-5.92%
MCK	76 Outperform	$90.03B	27.97	51.23%	0.39%	16.22%	15.29%
HSIC	75 Outperform	$8.61B	21.81	11.78%	―	1.75%	8.76%
SHTDY	74 Outperform	$7.33B	7.48	9.19%	4.01%	-3.62%	-23.24%
PDCO	70 Outperform	$2.77B	20.21	14.15%	2.49%	-0.85%	-23.40%
CAH	70 Outperform	$38.76B	25.36	-43.80%	1.25%	0.78%	183.45%
Sector *	54 Neutral	$5.34B	3.36	-45.10%	3.39%	16.81%	-0.03%