Zhejiang Expressway Co., Ltd.
Zhejiang Expressway Co., Ltd. Fundamental Analysis
Zhejiang Expressway Co., Ltd. (0576.HK) shows strong financial fundamentals with a PE ratio of 7.00, profit margin of 43.38%, and ROE of 12.33%. The company generates $12.9B in annual revenue with moderate year-over-year growth of 6.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 42.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0576.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0576.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate0576.HK shows balanced valuation metrics.
Growth Score
Moderate0576.HK shows steady but slowing expansion.
Financial Health Score
Moderate0576.HK shows balanced financial health with some risks.
Profitability Score
Moderate0576.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 0576.HK Expensive or Cheap?
P/E Ratio
0576.HK trades at 7.00 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 0576.HK's PEG of 7.49 indicates potential overvaluation.
Price to Book
The market values Zhejiang Expressway Co., Ltd. at 0.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.87 times EBITDA. This is generally considered low.
How Well Does 0576.HK Make Money?
Net Profit Margin
For every $100 in sales, Zhejiang Expressway Co., Ltd. keeps $43.38 as profit after all expenses.
Operating Margin
Core operations generate -11.42 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.33 in profit for every $100 of shareholder equity.
ROA
Zhejiang Expressway Co., Ltd. generates $2.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Zhejiang Expressway Co., Ltd. generates strong operating cash flow of $7.44B, reflecting robust business health.
Free Cash Flow
Zhejiang Expressway Co., Ltd. generates strong free cash flow of $6.67B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.11 in free cash annually.
FCF Yield
0576.HK converts 17.15% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.01
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.95
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How 0576.HK Stacks Against Its Sector Peers
| Metric | 0576.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.00 | 25.85 | Better (Cheaper) |
| ROE | 12.33% | 1270.00% | Weak |
| Net Margin | 43.38% | -41768.00% (disorted) | Strong |
| Debt/Equity | 1.95 | 0.79 | Weak (High Leverage) |
| Current Ratio | 1.27 | 10.04 | Neutral |
| ROA | 2.17% | -1493983.00% (disorted) | Weak |
0576.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Zhejiang Expressway Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
13.58%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
11.43%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
1683.59%
Industry Style: Cyclical, Value, Infrastructure
High Growth