NEW YORK (TheStreet) -- Shares of China Jo-Jo Drugstores (CJJD) were gaining 22.32% to $4 on heavy trading volume Thursday after the company announced that it achieved over 90% year over year annual sales growth in fiscal 2015.
China Jo-Jo said it saw 200% sales growth from its online pharmacy site in the fiscal year that ended on March 31, 2015. The company said that offline drugstores grew by 205% in the fiscal year.
Online pharmacy sales reached about $14 million in sales in fiscal 2015, the company said, accounting for "over 18%" of its total revenue in the fiscal year, up from about 11% in fiscal 2014.
China Jo-Jo said it will announce its full fiscal 2015 results on or before June 29.
About 3.8 million shares of China Jo-Jo were traded by 9:56 a.m. Thursday, well above the company's average trading volume of about 163,000 shares a day.
TheStreet Ratings team rates CHINA JO-JO DRUGSTORES INC as a Sell with a ratings score of E+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHINA JO-JO DRUGSTORES INC (CJJD) a SELL. This is based on the combination of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that we rate. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally high debt management risk and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Food & Staples Retailing industry and the overall market, CHINA JO-JO DRUGSTORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
- CJJD's debt-to-equity ratio of 0.97 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that CJJD's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.52 is low and demonstrates weak liquidity.
- The gross profit margin for CHINA JO-JO DRUGSTORES INC is rather low; currently it is at 16.84%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.59% trails the industry average.
- CHINA JO-JO DRUGSTORES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CHINA JO-JO DRUGSTORES INC reported poor results of -$1.81 versus -$1.05 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 101.5% when compared to the same quarter one year prior, rising from -$8.74 million to $0.13 million.
- You can view the full analysis from the report here: CJJD Ratings Report