CJJD Stock Fair Value – China Jo-Jo Drugstores Shares Plunge 58% Following $7M Equity Offering
April 19, 2023
Trending News ☀️
Shares of China ($NASDAQ:CJJD) Jo-Jo Drugstores plunged by a staggering 58% following an equity offering of $7 million. China Jo-Jo Drugstores is a drug retail chain based in China, specializing in Chinese herbal medicine, traditional remedies, and over-the-counter medicines. China Jo-Jo’s stock had been performing well prior to the announcement of the offering, with investors seemingly optimistic about the company’s prospects.
However, the announcement of the $7 million equity offering sent shockwaves through the stock market, causing shares to drop drastically. The equity offering was intended to raise capital for China Jo-Jo’s expansion plans and investments, including the acquisition of new stores and the construction of logistic centers. Despite this, investors remain wary due to the size of the offering relative to the market capitalization of the company. At this time, it is unclear what the future holds for China Jo-Jo Drugstores and its shareholders. It remains to be seen if the company will rebound from this major setback or if investors will continue to sell off their shares.
Stock Price
This sharp decline follows the company’s announcement of a $7 million equity offering, which caused investors to lose confidence in the company and sell off their shares. This unexpected drop in stock value has left investors and analysts scratching their heads and raising questions about the future of the company. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CJJD. More…
| Total Revenues | Net Income | Net Margin |
| 158.63 | -3.52 | -2.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CJJD. More…
| Operations | Investing | Financing |
| -4.83 | -0.2 | -1.57 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CJJD. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 101.77 | 79.83 | 4.36 |
Key Ratios Snapshot
Some of the financial key ratios for CJJD are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.6% | -45.4% | -1.2% |
| FCF Margin | ROE | ROA |
| -3.2% | -4.8% | -1.1% |
Analysis – CJJD Stock Fair Value
At GoodWhale, we analyze the financials of CHINA JO-JO DRUGSTORES in order to get a better understanding of their performance and potential. Our proprietary Valuation Line has calculated the intrinsic value of CHINA JO-JO DRUGSTORES shares to be around $2.0. However, currently the stock is being traded at only $0.7, meaning it is undervalued by 65.5%. This provides investors with an attractive opportunity to purchase shares of CHINA JO-JO DRUGSTORES at a discounted rate and benefit from their potential growth. More…
Peers
The competition between China Jo-Jo Drugstores Inc and its competitors, Anhui Huaren Health Pharmaceutical Co Ltd, 111 Inc, and Rite Aid Corp, is highly competitive. All four companies strive to provide top-notch quality products and services while also competing on convenience, price, and other factors. Each is determined to gain an edge on the other to become the leading drugstore in the market.
– Anhui Huaren Health Pharmaceutical Co Ltd ($SZSE:301408)
Anhui Huaren Health Pharmaceutical Co Ltd is a Chinese pharmaceutical company founded in 2003. The company specializes in the research, development, and production of traditional Chinese medicine and chemical drug products. As of 2023, the company has a market cap of 7.69B, indicating its relatively large presence in the industry. Additionally, its Return on Equity (ROE) of 15.65% shows its strong financial performance and ability to generate returns for its shareholders.
– 111 Inc ($NASDAQ:YI)
111 Inc is a leading Chinese healthcare provider and e-commerce platform. The company provides a wide range of services ranging from pharmacy retailing, drug discovery and development, medical services, and digital healthcare solutions. As of 2023, the company has a market capitalization of 228.06 million USD and an impressive return on equity of 57.73%. This indicates that the company has been able to generate significant profits from its investments, which makes it attractive to potential investors. Furthermore, 111 Inc’s diversified business model and competitive services have enabled them to remain competitive in the market and create significant value for their shareholders.
– Rite Aid Corp ($NYSE:RAD)
Rite Aid Corp is a retail pharmacy chain in the United States, operating more than 2,400 stores across the country. The company has a market capitalization of 142.44M as of 2023, which is the total market value of all of the company’s outstanding shares. Additionally, Rite Aid Corp boasts a high return on equity of 115.73%, which is indicative of the company’s ability to generate profits from its existing shareholders’ investments. This suggests that investors are satisfied with the performance of their investments in the company.
Summary
China Jo-Jo Drugstores recently experienced a sharp decline in stock price, falling by 58% in a single day after announcing a $7M equity offering. This price drop indicates that investors are wary of the company’s ability to meet their financial obligations and signals potential issues with the company’s capital structure and liquidity. It is important for investors to consider the current financial situation and determine if this stock is still a viable option for their investment portfolio. Additionally, investors should pay attention to how the company plans to use the proceeds from the equity offering and any other related developments that may influence the stock price.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
