Supermarket chain iFresh (IFMK) has faced several challenges in recent months and has yet to release financial results for its most recent financial year and the previous two quarters. So will his recent collaboration with Alibaba’s Tmall (BABA) help him turn around his business? Let’s find out.
Shutterstock.com – StockNews
China’s leading supermarket chain listed on a major US stock exchange, iFresh Inc. (IFMK) has two wholesale facilities and eight retail supermarkets in New York City, Massachusetts and Florida. The Long Island City, NY-based company has entered into several strategic partnerships in recent months. And its stock gained 24.1% over the past month to close yesterday’s trading session at $ 1.08. However, stocks have lost 20% in the past six months and 41.9% in the past nine months.
IFMK has not yet declared its Form 10-K for the period ended March 31, 2021. In addition, as indicated in its Form 8-K of October 27, 2021, the company is still preparing its financial statements for its financial year ended March 31, 2021. March. , 2021, for the quarter ended June 30, 2021 and for the quarter ended September 30, 2021.
Additionally, the Nasdaq informed the company in September 2021 that due to its continued non-compliance with the annual meeting and Nasdaq filing requirements, its securities were subject to deletion except request for a hearing before a hearing panel of the Nasdaq. Thus, its short-term outlook appears uncertain.
Here is what could influence IFMK’s performance in the short term:
Strategic collaborations
On August 30, IFMK entered into an exclusive agency agreement with Bit Farm Inc., making IFMK the exclusive distributor of Bit Silica +, a fertilizer that promotes plant growth. The company also partnered with HungryPanda in April 2021 to jointly launch an online perishable food delivery service in New York City.
Negative impact of technological repression in China
IFMK has entered into a framework product supply agreement with Alibaba Group Holding Limited (BABA) Tmall Global Group on November 10, 2021. This enables IFMK to sell American food and products in China through Tmall Global’s cross-border e-commerce platform.
However, BABA’s profit for its last quarter dived 81% amid the Chinese government’s crackdown on tech companies. The Chinese economy has also affected its slowest growth rate in one year in the third quarter, penalized by power cuts and fluctuations in the real estate sector. Thus, the expansion of IFMK in China could be strongly impacted.
Low profitability
In terms of gross profit over the past 12 months, IFMK’s 21.25% is 37.5% lower than the industry average of 33.99%. Likewise, the stock’s EBITDA and net margins of 0.04% and 0.79% respectively over the past 12 months are below the respective industry averages of 13.68% and 5.33%. In addition, its 0.57% over 12 months ROTATION is 88.4% below the industry average of 4.89%.
POWR ratings don’t indicate enough upside
IFMK has an overall rating of C, which equates to a neutral in our POWR odds system. POWR scores are calculated by considering 118 separate factors, each factor being weighted to an optimal degree.
Our proprietary scoring system also rates each stock against eight distinct categories. IFMK has a C grade for quality, which is consistent with its lower profitability ratios than the industry.
The stock has a D rating for Momentum, which is in line with its loss of 6.1% in the past three months and a 20% decline in the past six months.
IFMK also has a D rating for the stock, which is consistent with its 4,003.22x and 3.22x 12-month EV / EBITDA and P / B, respectively, which are above industry averages of 12.92x and 2 , 93x.
IFMK is ranked n ° 37 out of 40 shares in the Grocery Stores / Big Box Retailers industry. As well, Click here to also see IFMK’s ratings for stability, sentiment and growth.
Final result
IFMK had reported strong sales of exotic fruits varieties like dragon fruit, lychee and longan in August 2021. However, the stock is currently trading 74.6% below its 52-week high of $ 4.25, reached on February 11, 2021. In in its latest Form 8-K, the company stated that it is working on restating its consolidated financial statements for the three, six and nine months ended June 30, 2020, September 30, 2020 and December 31, 2020, respectively. it might be wise to wait before betting on the stock.
How does iFresh (IFMK) compare to its peers?
Although IFMK has an overall POWR rating of C, one can consider investing in the following grocery / big box stocks with an A (strong buy) rating: Albertsons Companies, Inc. (ACI), Woolworths Holdings Limited (WHY) and Ingles Markets, Incorporated (IMKTA).
IFMK shares fell $ 0.06 (-5.56%) in trading before market on Friday. Since the start of the year, IFMK has gained 37.93%, compared to 26.87% for the benchmark S&P 500 during the same period.
About the Author: Manisha Chatterjee
Since she was young, Manisha has had a strong interest in the stock market. She majored in economics in college and has a passion for writing, which led her to her career as a research analyst.
Following…
The post office Is iFresh a good stock of groceries to buy? appeared first on StockNews.com
