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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
The industry rank for China Modern Dairy Holdings's Net-Net Working Capital or its related term are showing as below:
FRA:07M's Price-to-Net-Net-Working-Capital is not ranked *
in the Consumer Packaged Goods industry.
Industry Median: 6.99 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
China Modern Dairy Holdings (FRA:07M) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
China Modern Dairy Holdings Net-Net Working Capital Related Terms
China Modern Dairy Holdings Net-Net Working Capital Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
China Modern Dairy Holdings Net-Net Working Capital Chart
FRA:07M vs ADM, BG, TSN: Net-Net Working Capital Comparison
For the Farm Products subindustry, China Modern Dairy Holdings's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Modern Dairy Holdings Price-to-Net-Net-Working-Capital vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, China Modern Dairy Holdings's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where China Modern Dairy Holdings's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of €-0.30 mean?
China Modern Dairy Holdings (FRA:07M) has a Net-Net Working Capital of €-0.30 as of Dec. 2025. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on China Modern Dairy Holdings According to the industry distribution chart, China Modern Dairy Holdings ranks #999999 out of 652 companies in the Consumer Packaged Goods industry.
Is China Modern Dairy Holdings' Net-Net Working Capital too high?
China Modern Dairy Holdings' current Net-Net Working Capital is €-0.30. Based on the distribution chart, China Modern Dairy Holdings ranks #999999 out of 652 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, China Modern Dairy Holdings has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Modern Dairy Holdings' Net-Net Working Capital compare to ADM and BG?
According to the Consumer Packaged Goods industry distribution chart, China Modern Dairy Holdings ranks #999999 out of 652 companies for Net-Net Working Capital. This places China Modern Dairy Holdings in the lower half of its industry. The industry median Net-Net Working Capital is 6.99. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Consumer Packaged Goods company?
The median Net-Net Working Capital among Consumer Packaged Goods companies is 6.99, based on 652 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on China Modern Dairy Holdings For the Consumer Packaged Goods industry, the median Net-Net Working Capital is 6.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Modern Dairy Holdings's current Net-Net Working Capital is €-0.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Modern Dairy Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Modern Dairy Holdings (FRA:07M) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.10, compared to a current price of €0.16 — trading 55% above its estimated fair value. The current Net-Net Working Capital is €-0.30. China Modern Dairy Holdings' overall GF Score™ is 55/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For China Modern Dairy Holdings (FRA:07M), the current Net-Net Working Capital is €-0.30 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China Modern Dairy Holdings (FRA:07M) Overvalued in 2026?
Based on GuruFocus' analysis, China Modern Dairy Holdings stock appears to be overvalued.
The current stock price of €0.16 is trading 55% above its estimated GF Value™ of €0.10.
GuruFocus considers China Modern Dairy Holdings to be Significantly Overvalued.
Key valuation signals for FRA:07M:
Net-Net Working Capital: €-0.30
GF Value™: €0.10 vs. price of €0.16 (55% above fair value)
No single metric tells the full story. See the FRA:07M stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Modern Dairy Holdings Ltd operates in the Chinese food industry. The business of the company includes the production of raw milk, and its revenue mainly depends on the sale of raw milk. The company produces and sells raw milk to customers for processing into dairy products, Liquid Milk, ice cream, formula milk and other dairy products business, which relates to its sale of liquid milk products. It also engaged in new business areas such as feed business, intelligent e-commerce platforms, and forage grass planting. The segments of the company are the Raw milk business and the integrated dairy farming solutions business. The company generates the majority of its revenue from the Raw milk business that engages in raising and breeding dairy cows to produce and sell raw milk.
55GF Score
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