Chinasoft International Limited
Chinasoft International Limited Fundamental Analysis
Chinasoft International Limited (0354.HK) shows weak financial fundamentals with a PE ratio of 25.45, profit margin of 1.90%, and ROE of 2.73%. The company generates $15.7B in annual revenue with weak year-over-year growth of -2.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 28.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0354.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0354.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate0354.HK shows balanced valuation metrics.
Growth Score
Weak0354.HK faces weak or negative growth trends.
Financial Health Score
Excellent0354.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate0354.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 0354.HK Expensive or Cheap?
P/E Ratio
0354.HK trades at 25.45 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 0354.HK's PEG of -0.71 indicates potential undervaluation.
Price to Book
The market values Chinasoft International Limited at 0.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.00 times EBITDA. This is generally considered low.
How Well Does 0354.HK Make Money?
Net Profit Margin
For every $100 in sales, Chinasoft International Limited keeps $1.90 as profit after all expenses.
Operating Margin
Core operations generate 7.70 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.73 in profit for every $100 of shareholder equity.
ROA
Chinasoft International Limited generates $1.72 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Chinasoft International Limited generates limited operating cash flow of $278.86M, signaling weaker underlying cash strength.
Free Cash Flow
Chinasoft International Limited generates weak or negative free cash flow of $83.68M, restricting financial flexibility.
FCF Per Share
Each share generates $0.03 in free cash annually.
FCF Yield
0354.HK converts 1.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.71
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.32
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How 0354.HK Stacks Against Its Sector Peers
| Metric | 0354.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.45 | 33.94 | Better (Cheaper) |
| ROE | 2.73% | 1002.00% | Weak |
| Net Margin | 1.90% | -48794.00% (disorted) | Weak |
| Debt/Equity | 0.41 | 0.44 | Neutral |
| Current Ratio | 2.32 | 5.74 | Strong Liquidity |
| ROA | 1.72% | -288341.00% (disorted) | Weak |
0354.HK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Chinasoft International Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.74%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-64.95%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-100.00%
Industry Style: Growth, Innovation, High Beta
Declining