Inner Mongolia Yili Industrial Group Co., Ltd. (600887.SS) stock analysis

In our weekly check, Inner Mongolia Yili Industrial Group Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 3, red flags: 3.

About Inner Mongolia Yili Industrial Group Co., Ltd.

Inner Mongolia Yili Industrial Group Co., Ltd. is a Consumer Defensive company (Packaged Foods) based in China, listed on SHH as 600887.SS.

What our checks show for 600887.SS

Red flags

• Revenue fell 1.1% a year over the last 3 years.
• The dividend takes 228% of profit: little cushion if profit falls.
• The stock has fallen as much as 79% from a peak. Would you have held through that?

Warning signs

• Net debt is 3.4x a year of EBITDA (debt/equity 1.21). That limits room in a downturn and raises refinancing risk.
• Analysts expect only about 4.6% a year of growth in revenue.
• The net margin is only 8.3%: little room if costs rise.

Strengths

• Operating profit covers interest 14.5 times over.
• The gross margin is 34.9% and has risen by 4.2 points: pricing power is holding.
• Operating cash flow is 2.18x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 17.4% a year over the next years.
• Analysts expect the net margin to improve by 2.7 points from today's 8.3%.
• Free cash flow is 15.8% of revenue: cash for dividends, buybacks or growth.

Similar companies

603288.SS · NESN.SW · BIMBOA.MX · SIGMAFA.MX · ORK.OL · 0288.HK

Questions

What grade does Inner Mongolia Yili Industrial Group Co., Ltd. (600887.SS) have?

In our weekly check, Inner Mongolia Yili Industrial Group Co., Ltd. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 19 pass, warnings: 3, red flags: 3. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of 600887.SS stock?

This week's biggest flags for Inner Mongolia Yili Industrial Group Co., Ltd.: Weak revenue growth, Dividend stretched, Deep past fall. In total 6 of 25 checks show a warning or a red flag.

What does Inner Mongolia Yili Industrial Group Co., Ltd. do?

Inner Mongolia Yili Industrial Group Co., Ltd. is a Consumer Defensive company (Packaged Foods) based in China, listed on SHH as 600887.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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