JZJ Chain Drugstore (SHSE:605266) GF Value Rank : 4 (As of Jun. 19, 2024)

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What is JZJ Chain Drugstore GF Value Rank?

JZJ Chain Drugstore has the GF Value Rank of 4.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.

Competitive Comparison of JZJ Chain Drugstore's GF Value Rank

For the Pharmaceutical Retailers subindustry, JZJ Chain Drugstore's GF Value Rank, along with its competitors' market caps and GF Value Rank 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.

JZJ Chain Drugstore's GF Value Rank Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, JZJ Chain Drugstore's GF Value Rank distribution charts can be found below:

* The bar in red indicates where JZJ Chain Drugstore's GF Value Rank falls into.

JZJ Chain Drugstore GF Value Rank Related Terms

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JZJ Chain Drugstore (SHSE:605266) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » JZJ Chain Drugstore Corp (SHSE:605266) » Definitions » GF Value Rank

Traded in Other Exchanges

N/A

Address

No. 10, Qiying Street, Union Street, Panlong District, Yunnan Province, Kunming, CHN, 650224

Website

http://www.jzj.cn

Jianzhijia Pharmaceutical Chain Group Co Ltd is engaged in the retail chain business of health products such as medicines, health foods, personal care products, household health products, convenience foods, and daily consumables and provides related professional services.

Executives

Jin Yu Mei	Supervisors
Chai Zhi Qi	senior management
Shi Yan Chun	senior management
Hu Yu Ming	senior management
Fang Li	Supervisors
Sun Li	Supervisors
Jiang Yan Yin	senior management
Li Heng	Director
Zhang Yun Hong	Director
Wang Yan Ping	Director
Lan Bo	Directors, senior managers
Yan Wen	senior management

JZJ Chain Drugstore (SHSE:605266) Headlines

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