NARI Technology Co., Ltd. (600406.SS) stock analysis

In our weekly check, NARI Technology Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 6, red flags: 1.

About NARI Technology Co., Ltd.

NARI Technology Co., Ltd. is an Industrials company (Electrical Equipment & Parts) based in China, listed on SHH as 600406.SS.

What our checks show for 600406.SS

Red flags

• Recovering from its deepest fall took about 4.7 years.

Warning signs

• The net margin fell by 1.7 points over 5 years, to 11.7%: the company keeps less of each sale as profit.
• The gross margin fell by 1.6 points, to 25.1%: costs are rising faster than prices.
• Operating cash flow is only 0.64x net profit: part of the reported profit does not arrive as cash.
• Free cash flow is only 4.6% of revenue.
• Free cash flow covers the dividend only 0.6 times.
• The stock has fallen as much as 58% from a peak. Would you have held through that?

Strengths

• Debt is low: 0.04x equity.
• Operating profit covers interest 644 times over.
• Analysts expect earnings per share to grow about 13.9% a year over the next years.
• Revenue grew 15.2% a year over the last 3 years.
• A large company: market value $28 billion.
• Beta 0.55: the stock usually moves less than the market.

Similar companies

1519.TW · WEGE3.SA · 600183.SS · ASTOR.IS · ETN · 300274.SZ

Questions

What grade does NARI Technology Co., Ltd. (600406.SS) have?

In our weekly check, NARI Technology Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 6, red flags: 1. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 600406.SS stock?

This week's biggest flags for NARI Technology Co., Ltd.: Slow recovery after falls, Margins falling, Gross margin falling. In total 7 of 25 checks show a warning or a red flag.

What does NARI Technology Co., Ltd. do?

NARI Technology Co., Ltd. is an Industrials company (Electrical Equipment & Parts) based in China, listed on SHH as 600406.SS.

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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