Avary Holding(Shenzhen)Co., Limited (002938.SZ) stock analysis

In our weekly check, Avary Holding(Shenzhen)Co., Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 5, red flags: 5.

About Avary Holding(Shenzhen)Co., Limited

Avary Holding(Shenzhen)Co., Limited is a Technology company (Hardware, Equipment & Parts) based in China, listed on SHZ as 002938.SZ.

What our checks show for 002938.SZ

Red flags

• The gross margin fell by 5.6 points, to 14.3%: costs are rising faster than prices.
• Free cash flow is negative (-9.9% of revenue): the business spends more cash than it brings in.
• The price swings a lot: 66.9% annual volatility. Expect large ups and downs.
• The stock has fallen as much as 71% from a peak. Would you have held through that?
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• The net margin fell by 0.8 points over 5 years, to 9.1%: the company keeps less of each sale as profit.
• Revenue grew only 4.6% a year over the last 3 years.
• Earnings per share fell 9.1% a year over the last 3 years.
• Net profit fell 9% a year over the last 3 years.
• The net margin is only 9.1%: little room if costs rise.

Strengths

• Net debt is only 0.4x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 32.1 times over.
• Operating cash flow is 2.32x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 65.8% a year over the next years.
• Analysts expect revenue to grow about 33.8% a year over the next years.
• Analysts expect the net margin to improve by 5.7 points from today's 9.1%.

Similar companies

300433.SZ · 300476.SZ · GLW · 300408.SZ · 002916.SZ · 6805.TW

Questions

What grade does Avary Holding(Shenzhen)Co., Limited (002938.SZ) have?

In our weekly check, Avary Holding(Shenzhen)Co., Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 15 pass, warnings: 5, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 002938.SZ stock?

This week's biggest flags for Avary Holding(Shenzhen)Co., Limited: Gross margin falling, Weak free cash flow, Very volatile. In total 10 of 25 checks show a warning or a red flag.

What does Avary Holding(Shenzhen)Co., Limited do?

Avary Holding(Shenzhen)Co., Limited is a Technology company (Hardware, Equipment & Parts) based in China, listed on SHZ as 002938.SZ.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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