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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 Sipai Health Technology Co's Net-Net Working Capital or its related term are showing as below:
FRA:AX1's Price-to-Net-Net-Working-Capital is ranked worse than 72% of 25
companies
in the Medical Distribution industry
Industry Median: 6.76
vs FRA:AX1: 13.90
Sipai Health Technology Co (FRA:AX1) 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.
Sipai Health Technology Co Net-Net Working Capital Related Terms
Sipai Health Technology Co 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.
Sipai Health Technology Co Net-Net Working Capital Chart
FRA:AX1 vs MCK, COR, CAH: Net-Net Working Capital Comparison
For the Medical Distribution subindustry, Sipai Health Technology Co'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.
Sipai Health Technology Co Price-to-Net-Net-Working-Capital vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Sipai Health Technology Co's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Sipai Health Technology Co'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 €0.02 mean?
Sipai Health Technology Co (FRA:AX1) has a Net-Net Working Capital of €0.02 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 Sipai Health Technology Co According to the industry distribution chart, Sipai Health Technology Co ranks #18 out of 25 companies in the Medical Distribution industry, placing it in the top 72%.
Is Sipai Health Technology Co's Net-Net Working Capital too high?
Sipai Health Technology Co's current Net-Net Working Capital is €0.02. Based on the distribution chart, Sipai Health Technology Co ranks #18 out of 25 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, Sipai Health Technology Co has a GF Score™ of 64/100, reflecting its overall financial health beyond just this single metric.
How does Sipai Health Technology Co's Net-Net Working Capital compare to MCK and COR?
According to the Medical Distribution industry distribution chart, Sipai Health Technology Co ranks #18 out of 25 companies for Net-Net Working Capital. This places Sipai Health Technology Co in the lower half of its industry. The industry median Net-Net Working Capital is 6.76. 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 Medical Distribution company?
The median Net-Net Working Capital among Medical Distribution companies is 6.76, based on 25 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 Sipai Health Technology Co For the Medical Distribution industry, the median Net-Net Working Capital is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sipai Health Technology Co's current Net-Net Working Capital is €0.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sipai Health Technology Co stock overvalued right now?
Sipai Health Technology Co (FRA:AX1) has a current Net-Net Working Capital of €0.02. The stock's GF Value™ is €0.22, compared to a current price of €0.14 — trading 36.8% below its estimated fair value. The current Net-Net Working Capital is €0.02. Sipai Health Technology Co's overall GF Score™ is 64/100 with 5 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 Sipai Health Technology Co (FRA:AX1), the current Net-Net Working Capital is €0.02 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 Sipai Health Technology Co (FRA:AX1) Overvalued in 2026?
Based on GuruFocus' analysis, Sipai Health Technology Co stock appears to be undervalued.
The current stock price of €0.14 is trading 36.8% below its estimated GF Value™ of €0.22.
Key valuation signals for FRA:AX1:
Net-Net Working Capital: €0.02
GF Value™: €0.22 vs. price of €0.14 (36.8% below fair value)
No single metric tells the full story. See the FRA:AX1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sipai Health Technology Co Ltd is a medical technology and health management company in China. The company has three reportable operating segments: Specialty Pharmacy Business - engaged in the operation and distribution of specialty pharmacy stores and pharmaceutical products; Physician Research Assistance Business - offering pharmaceutical companies and other clinical trial institutions site management organization services; Commercial Insurance Services Business - rendering insurance brokerage services to insurance companies and health management services to insurance carriers and enterprise clients. The company generates key revenue from the Specialty Pharmacy Business. Almost all of the company's revenues were derived from operations in the PRC.
64GF Score
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Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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