China SXT Pharmaceuticals

SXTC

Drug Manufacturers - Specialty & Generic · Healthcare

Price

$2.45

-0.12 (-4.67%)

Market Cap

$1.7M

Exchange

NASDAQ

Winston Score

Winston is worried

Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+1534.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 42K (2022) → 680K (2026)

China SXT Pharmaceuticals makes traditional Chinese medicine (TCM) products and sells them in China. Its core products include concentrated TCM granules, which are processed herbal medicines that dissolve in water and are easier to use than raw herbs. Its main customers are hospitals, clinics, and pharmacies across China.

The company earns money by selling its TCM products directly to healthcare distributors and medical institutions. It operates almost entirely within China and is a small-cap company with a market cap near zero, reflecting serious financial stress — its operating margin is deeply negative, meaning it spends far more than it earns. The biggest risk facing the business is its ongoing inability to turn a profit, and it will need to significantly cut costs or grow revenue to remain a viable company.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+163.0% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+133.3% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$178,765/ year

↓ Declining (-7% vs prior year)

16.7% of revenue

In line with sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

17.5%ownership

Insiders own a meaningful stake in the company

Cash Runway

~3 years

$28M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

$28M cash & investments at current burn rate

Revenue accelerating

China SXT Pharmaceuticals grew revenue 163% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

69.6%

Premium pricing power — 69.6% gross margin

Operating Margin

-65.4%

Losing money on operations — -65.4%

ROCE

-2.5%

Weak — -2.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-55.2%

Shrinking sales (-55.2% YoY)

EPS YoY

-4783.3%

Earnings shrinking (-4783.3% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-280.9%

Burning cash (-280.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.04

Conservative — low debt load (0.04)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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