Sun Art Retail Group (SURRY) AI Stock Analysis

• Market Cap: $1.88B
• Dividend Yield: 13.18%
• Average Volume (3M): 104.00
• Price to Earnings (P/E): 180.9
• Beta (1Y): 0.05
• Revenue Growth: -5.93%
• EPS Growth: N/A
• Country: US
• Employees: 85,778
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): -0.02
• Shares Outstanding: 954,050,500
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 104
• PEG Ratio: -0.30
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.22
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.70
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.34
• Enterprise Value/Ebitda: 1.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ―

Sun Art Retail Group's overall stock score is moderate, reflecting significant operational and profitability challenges, as evidenced by declining revenues and negative income statements. Although the company maintains a strong cash position, increased leverage poses a risk. Technical indicators are mixed, and the negative P/E ratio highlights valuation concerns despite a high dividend yield. These factors contribute to a cautious outlook.

Positive Factors

Strategic Partnerships

Partnerships with Alibaba enhance Sun Art's online presence and leverage advanced technology and logistics, potentially boosting long-term revenue growth through expanded digital sales channels.

Cash Position

A strong cash position provides Sun Art with financial flexibility to invest in growth opportunities and weather economic downturns, supporting long-term operational stability.

Economies of Scale

Sun Art's large store network enables cost efficiencies and price competitiveness, strengthening its market position and supporting sustainable revenue growth over time.

Negative Factors

Revenue Decline

Consistent revenue decline indicates potential market share loss and operational inefficiencies, which could hinder long-term growth and profitability if not addressed.

Rising Leverage

Increased leverage can strain financial resources, limiting the company's ability to invest in growth and increasing vulnerability to economic fluctuations.

Profitability Challenges

Negative earnings reflect operational challenges and deteriorating margins, which could impact the company's ability to sustain long-term profitability and shareholder value.

Sun Art Retail Group Business Overview & Revenue Model

Company Description

Sun Art Retail Group Limited, an investment holding company, operates brick-and-mortar stores and online sales channels in the People's Republic of China. It operates hypermarkets, superstores, and mini stores under RT-Mart, RT-Super, and RT-Mini names. As of March 31, 2022, it had a total of 490 hypermarkets, nine superstores, and 103 mini stores. The company also provides consulting, investment, wholesaling, and retailing services. Sun Art Retail Group Limited was founded in 1998 and is based in Shanghai, the People's Republic of China.

How the Company Makes Money

Sun Art Retail Group generates its revenue primarily through the sale of consumer goods in its hypermarkets and online platforms. The company's key revenue streams include direct sales of merchandise across various categories such as food and non-food items. Sun Art benefits from the economies of scale achieved through its extensive network of stores, enabling cost efficiencies and price competitiveness. Additionally, the company has formed strategic partnerships with e-commerce giants like Alibaba, enhancing its online presence and driving sales through digital channels. These partnerships allow Sun Art to leverage Alibaba's technology and logistics infrastructure, broadening its customer base and boosting revenue growth through increased online sales.

Sun Art Retail Group Financial Statement Overview

Summary

Sun Art Retail Group faces operational and profitability challenges, as reflected in declining revenues and negative income statements. The balance sheet shows stability in cash reserves but increased leverage. Cash flow generation has also weakened, highlighting the need for operational improvements to sustain financial health.

Income Statement

Sun Art Retail Group has experienced declining revenue over recent years, with a significant drop from 2021 to 2024. The company posted negative EBIT and net income in the recent period, indicating operational challenges. Margins have deteriorated, with negative EBIT and net profit margins suggesting profitability issues.

Balance Sheet

The balance sheet reflects a reasonable equity base, with an equity ratio around 35% in 2024. However, the debt-to-equity ratio has increased, indicating rising leverage. Despite increased liabilities, the company maintains a significant cash position, which provides some financial stability.

Cash Flow

The cash flow statement shows a decline in operating cash flow over time, with a significant drop in 2024. Free cash flow remains positive but has decreased compared to prior years, impacting the company's ability to generate cash from operations. The free cash flow to net income ratio is affected by negative net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	67.03B	71.55B	72.57B	83.66B	88.13B	99.69B
Gross Profit	14.90B	17.24B	17.96B	20.58B	21.47B	25.09B
EBITDA	3.63B	2.97B	2.39B	858.00M	3.51B	7.14B
Net Income	77.00M	405.00M	-1.60B	78.00M	-826.00M	2.86B
Balance Sheet
Total Assets	7.53B	55.97B	60.72B	64.12B	65.75B	69.23B
Cash, Cash Equivalents and Short-Term Investments	2.59B	13.22B	16.42B	19.18B	18.66B	20.12B
Total Debt	7.20B	7.32B	8.38B	7.71B	7.38B	8.05B
Total Liabilities	35.40B	35.55B	38.92B	39.92B	40.68B	41.37B
Stockholders Equity	2.56B	20.09B	21.40B	23.52B	23.96B	26.22B
Cash Flow
Free Cash Flow	851.08M	0.00	907.00M	4.28B	3.56B	9.62B
Operating Cash Flow	1.11B	0.00	926.00M	4.30B	3.58B	9.62B
Investing Cash Flow	1.85B	0.00	-52.00M	-1.20B	3.30B	-11.07B
Financing Cash Flow	-2.21B	0.00	-1.36B	-1.99B	-3.68B	-2.68B

Sun Art Retail Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SURRY, the sentiment is Negative. The current price of 1.97 is below the 20-day moving average (MA) of 2.08, below the 50-day MA of 2.17, and below the 200-day MA of 2.40, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 30.45 is Neutral, neither overbought nor oversold. The STOCH value of 47.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SURRY.

Sun Art Retail Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
M	74 Outperform	$5.32B	11.77	11.28%	3.23%	-2.83%	184.32%
KSS	68 Neutral	$1.96B	10.25	5.02%	2.33%	-6.13%	-22.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
WWW	58 Neutral	$1.45B	16.90	25.57%	2.28%	3.61%	―
SURRY	56 Neutral	$1.88B	180.92	0.37%	13.18%	-5.93%	―
CPRI	56 Neutral	$2.69B	-2.29	-165.96%	―	-17.66%	-223.06%
DAN	53 Neutral	$3.38B	65.41	-4.82%	1.70%	-18.23%	―