Sinopharm Group Co (SHTDY) AI Stock Analysis

• Market Cap: $7.48B
• Dividend Yield: 3.98%
• Average Volume (3M): 906.00
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.29
• Revenue Growth: -2.32%
• EPS Growth: -21.17%
• Country: US
• Employees: 108,217
• Sector: Healthcare
• Sector Strength: 52
• Industry: Medical - Distribution
• EPS (TTM): 0.77
• Shares Outstanding: 268,362,150
• 10 Day Avg. Volume: 641
• 30 Day Avg. Volume: 906
• 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: 3.39
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 0.57
• Enterprise Value/Ebitda: 1.26
• 1Y Price Target: $13.50
• Price Target Upside: 13.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $13.50 ▲(13.26% Upside)

Sinopharm Group's overall stock score is driven by its solid financial performance and attractive valuation. The technical analysis indicates potential short-term weakness, but the stock's undervaluation and strong dividend yield provide a compelling investment case. The absence of earnings call data and corporate events means the score primarily reflects financial and valuation metrics.

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 channels, primarily by distributing pharmaceutical products to hospitals and clinics across China. The company's revenue model is based on the wholesale distribution of drugs, medical devices, and healthcare products, along with retail sales through its pharmacy chains. Additionally, Sinopharm earns income from the manufacturing of pharmaceuticals and vaccines, which are sold to both domestic and international markets. The company also engages in strategic partnerships and collaborations with global pharmaceutical companies, enhancing its product offerings and market reach. Significant government contracts and tenders for medical supplies further contribute to its revenue, particularly in the public healthcare sector.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	584.51B	596.57B	552.15B	521.05B	456.41B
Gross Profit	44.26B	48.51B	47.43B	44.05B	40.32B
EBITDA	20.17B	26.90B	26.25B	24.68B	22.62B
Net Income	7.05B	9.05B	14.35B	13.06B	12.10B
Balance Sheet
Total Assets	392.83B	383.39B	364.78B	335.41B	311.24B
Cash, Cash Equivalents and Short-Term Investments	54.31B	63.81B	55.22B	43.54B	50.22B
Total Debt	76.39B	73.78B	69.59B	68.37B	68.53B
Total Liabilities	266.14B	263.08B	254.71B	235.76B	221.29B
Stockholders Equity	78.88B	74.58B	68.07B	61.89B	56.36B
Cash Flow
Free Cash Flow	9.58B	14.84B	18.55B	7.05B	9.07B
Operating Cash Flow	11.55B	17.17B	20.96B	9.31B	11.15B
Investing Cash Flow	-3.75B	-944.53M	-3.59B	-1.27B	-2.20B
Financing Cash Flow	-17.29B	-7.64B	-5.69B	-14.69B	2.03B

Sinopharm Group Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.92
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Negative. The current price of 11.92 is below the 20-day moving average (MA) of 12.23, below the 50-day MA of 12.10, and below the 200-day MA of 12.15, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 43.58 is Neutral, neither overbought nor oversold. The STOCH value of 25.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SHTDY.

Sinopharm Group Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHTDY	74 Outperform	$7.48B	7.93	8.74%	3.98%	-2.32%	-21.17%
HSIC	71 Outperform	$8.21B	21.75	11.18%	―	2.29%	14.98%
COR	66 Neutral	$57.75B	30.64	130.60%	0.74%	11.56%	5.31%
MCK	66 Neutral	$86.69B	27.81	51.23%	0.42%	20.35%	11.96%
PBH	65 Neutral	$3.20B	15.44	12.05%	―	0.63%	4.23%
CAH	62 Neutral	$35.71B	23.19	-43.80%	1.34%	-1.94%	85.70%
Sector *	51 Neutral	$7.93B	-0.32	-43.43%	2.21%	22.30%	-1.88%