Sinopharm Group Co (SHTDY) AI Stock Analysis

• Market Cap: $7.96B
• Dividend Yield: 3.72%
• Average Volume (3M): 1.38K
• Price to Earnings (P/E): 8.4
• Beta (1Y): 0.30
• Revenue Growth: -2.32%
• EPS Growth: -21.16%
• Country: US
• Employees: 108,217
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Distribution
• EPS (TTM): N/A
• Shares Outstanding: 268,362,150
• 10 Day Avg. Volume: 773
• 30 Day Avg. Volume: 1,375
• PEG Ratio: -0.40
• Price to Book (P/B): 0.78
• Price to Sales (P/S): 0.11
• P/FCF Ratio: 6.45
• Enterprise Value/Market Cap: 12.34
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 2.28
• Enterprise Value/Ebitda: 4.77
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $13.50 ▲(5.88% Upside)

Sinopharm Group's stock is supported by strong financial performance and attractive valuation metrics. The technical analysis indicates a positive trend, but caution is advised due to overbought signals. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Cash Generation

Sinopharm's ability to generate cash from operations indicates strong operational efficiency, supporting long-term financial stability and investment capacity.

Balanced Financing Approach

A balanced approach to financing with a reasonable debt-to-equity ratio reduces financial risk and enhances the company's ability to manage economic fluctuations.

Efficient Operations

Strong profit margins reflect efficient operations and cost management, which are crucial for sustaining profitability and competitive positioning in the healthcare sector.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth may signal challenges in market expansion or competitive pressures, potentially affecting long-term growth prospects.

Decreasing Free Cash Flow

A significant drop in free cash flow growth can constrain the company's ability to invest in new opportunities or weather economic downturns, impacting future growth.

Moderate Reliance on Liabilities

A moderate reliance on liabilities suggests potential leverage risks, which could limit financial flexibility and increase vulnerability to interest rate changes.

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 generates revenue through multiple key streams, primarily from the wholesale and retail distribution of pharmaceutical products and medical devices. The company operates an extensive network of pharmacies and hospitals, which facilitates direct sales to consumers and healthcare institutions. Additionally, Sinopharm has significant revenue from manufacturing its own range of pharmaceuticals and vaccines. Strategic partnerships with international pharmaceutical companies enable Sinopharm to distribute foreign products in China, further enhancing its product portfolio and revenue. Government contracts for public health initiatives and vaccination programs also contribute to its earnings, particularly during health crises. Overall, the company's diversified operations in drug distribution, manufacturing, and healthcare services underpin its robust revenue model.

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	575.82B	584.51B	596.57B	552.15B	521.05B	456.41B
Gross Profit	43.09B	44.26B	48.51B	47.43B	44.05B	40.32B
EBITDA	20.58B	20.17B	26.90B	26.25B	24.68B	22.62B
Net Income	6.80B	7.05B	9.05B	8.53B	7.76B	7.19B
Balance Sheet
Total Assets	420.17B	392.83B	383.39B	364.78B	335.41B	311.24B
Cash, Cash Equivalents and Short-Term Investments	47.16B	54.31B	63.81B	55.22B	43.54B	50.22B
Total Debt	93.29B	76.39B	73.78B	69.59B	68.37B	68.53B
Total Liabilities	290.70B	266.14B	263.08B	254.71B	235.76B	221.29B
Stockholders Equity	80.38B	78.88B	74.58B	68.07B	61.89B	56.36B
Cash Flow
Free Cash Flow	16.32B	9.58B	14.84B	18.55B	7.05B	9.07B
Operating Cash Flow	18.43B	11.55B	17.17B	20.96B	9.31B	11.15B
Investing Cash Flow	-3.24B	-3.75B	-944.53M	-3.59B	-1.27B	-2.20B
Financing Cash Flow	-23.26B	-17.29B	-7.64B	-5.69B	-14.69B	2.03B

Sinopharm Group Co Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHTDY, the sentiment is Neutral. The current price of 12.75 is below the 20-day moving average (MA) of 12.95, below the 50-day MA of 12.77, and above the 200-day MA of 12.04, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 46.06 is Neutral, neither overbought nor oversold. The STOCH value of 24.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SHTDY.

Sinopharm Group Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSIC	74 Outperform	$9.11B	24.44	11.39%	―	3.51%	29.65%
SHTDY	74 Outperform	$7.96B	8.43	8.74%	3.72%	-2.32%	-21.16%
COR	70 Neutral	$66.14B	42.82	144.31%	0.66%	9.31%	5.92%
CAH	66 Neutral	$48.22B	30.64	―	1.00%	4.37%	28.48%
PBH	66 Neutral	$2.97B	15.31	11.29%	―	-0.02%	-1.87%
MCK	62 Neutral	$101.24B	25.54	―	0.37%	17.23%	66.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Sinopharm Group Co Corporate Events

Sinopharm Group Reports Mixed Financial Results for 2025

Sinopharm Group Co., Ltd. is a leading company in the healthcare sector, primarily engaged in the distribution of pharmaceutical and medical products, with a significant presence in the Chinese market.

Sinopharm Group Reports Decline in Interim Earnings

Sinopharm Group Co., Ltd., a leading pharmaceutical distribution company based in China, operates in the pharmaceutical, medical device, and retail pharmacy sectors, providing a comprehensive range of healthcare products and services.