BEST INC Reports -$1.21 Non-GAAP EPADS Despite $305.19M in Revenue
November 25, 2023
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BEST INC ($NYSE:BEST) recently reported their financial results, with a Non-GAAP Earnings Per Average Diluted Share of -$1.21 and Revenue of $305.19 million. BEST INC is a leading technology company offering innovative products and services across the globe. They specialize in providing cutting edge cloud computing, artificial intelligence, and big data solutions for businesses. Despite the reported non-GAAP earnings, BEST INC continues to find success in the market. The company has experienced rapid growth in the past few years and continues to show promise with their new technological offerings.
They have become a leader in their industry, offering a wide range of services and products to their customers. The financial results for BEST INC demonstrate the company’s resilience and ability to remain competitive in the market. While their revenue was slightly less than expected, they still managed to produce a profit that exceeded expectations. This shows the strength of the company and their commitment to continuing to grow and provide innovative solutions to their customers.
Earnings
BEST INC recently released their earnings report for FY2023 Q2, ending June 30 2021. The report disclosed that the company earned a total revenue of 7374.7M CNY, a 282.8% increase from the previous year. This is a significant shift from three years ago. Despite a steady increase in total revenue since then, the net income loss of 460.97M CNY has placed BEST INC in an unfavorable position for this quarter.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Best Inc. More…
| Total Revenues | Net Income | Net Margin |
| 7.86k | -1.15k | -14.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Best Inc. More…
| Operations | Investing | Financing |
| -821.36 | 1.77k | -754.64 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Best Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.47k | 7.08k | 15.64 |
Key Ratios Snapshot
Some of the financial key ratios for Best Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -38.3% | – | -14.0% |
| FCF Margin | ROE | ROA |
| -12.7% | -180.5% | -9.2% |
Stock Price
Despite the negative earnings result and the subsequent drop in stock price, the company seemed to remain optimistic about their future prospects. Live Quote…
Analysis
GoodWhale has examined the wellness of BEST INC and, based on our Star Chart, classified it as an ‘elephant’ – a type of company that is rich in assets after deducting off liabilities. Companies that fall under this category typically attract investors who are seeking a safe return on their capital and steady cash flows. However, our analysis shows that BEST INC is relatively weak in terms of asset management, dividend payments, growth rate, and profitability. Furthermore, BEST INC has a low health score of 3/10 with regard to its cash flows and debt, suggesting that it is less likely to sustain future operations in times of crisis. Therefore, investors who are looking for short term returns may be less inclined to invest in BEST INC. More…
Peers
The company offers a comprehensive range of services including logistics, warehousing, transportation, and e-commerce. BEST Inc has a strong network of partners and suppliers, and its competitive advantage lies in its ability to provide cost-effective and efficient solutions to meet the needs of its customers.
– Shenzhen Feima International Supply Chain Co Ltd ($SZSE:002210)
Shenzhen Feima International Supply Chain Co Ltd is a Chinese company that offers logistics and supply chain management services. The company has a market capitalization of 6.33 billion as of 2022 and a return on equity of 9.46%. Shenzhen Feima International Supply Chain Co Ltd is a publicly traded company listed on the Shenzhen Stock Exchange.
– Shenzhen Prolto Supply Chain Management Co Ltd ($SZSE:002769)
Shenzhen Prolto Supply Chain Management Co Ltd is a company that provides supply chain management services. It has a market capitalization of 3.28 billion as of 2022 and a return on equity of 2.47%. The company offers services such as procurement, logistics, warehousing, and transportation. It also provides information technology services.
– Xinjiang Tianshun Supply Chain Co Ltd ($SZSE:002800)
Xinjiang Tianshun Supply Chain Co Ltd is a company that operates in the supply chain management industry. The company has a market capitalization of 2.17 billion as of 2022 and a return on equity of 6.85%. The company operates in the Xinjiang region of China and provides supply chain management services to companies in the region. The company has a strong focus on the food and beverage industry and has a wide network of suppliers and customers in the region. The company is well-positioned to benefit from the growing demand for supply chain management services in the region.
Summary
BEST Inc. is a Chinese logistics firm that reported its non-GAAP earnings per ADS of -$1.21 and revenue of $305.19 million. Analysts are largely negative on the company given its poor performance, with the majority of research firms rating the stock a “sell”. The company’s valuation is currently at a discount compared to competitors, making it an attractive investment for value investors.
However, due to its weak earnings and revenue growth, investors should approach any investment in BEST Inc. cautiously. The company has yet to find a way to improve its profitability, and further weakness in the market could lead to further price declines for the stock.
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