China East Education Holdings Limited
China East Education Holdings Limited Fundamental Analysis
China East Education Holdings Limited (0667.HK) shows moderate financial fundamentals with a PE ratio of 13.32, profit margin of 16.40%, and ROE of 12.59%. The company generates $4.6B in annual revenue with moderate year-over-year growth of 9.24%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 0667.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0667.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0667.HK trades at attractive valuation levels.
Growth Score
Excellent0667.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent0667.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate0667.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 0667.HK Expensive or Cheap?
P/E Ratio
0667.HK trades at 13.32 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 0667.HK's PEG of 1.10 indicates fair valuation.
Price to Book
The market values China East Education Holdings Limited at 1.62 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.31 times EBITDA. This is generally considered low.
How Well Does 0667.HK Make Money?
Net Profit Margin
For every $100 in sales, China East Education Holdings Limited keeps $16.40 as profit after all expenses.
Operating Margin
Core operations generate 21.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.59 in profit for every $100 of shareholder equity.
ROA
China East Education Holdings Limited generates $7.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China East Education Holdings Limited generates strong operating cash flow of $1.38B, reflecting robust business health.
Free Cash Flow
China East Education Holdings Limited generates strong free cash flow of $846.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.38 in free cash annually.
FCF Yield
0667.HK converts 8.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.62
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How 0667.HK Stacks Against Its Sector Peers
| Metric | 0667.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.32 | 22.36 | Better (Cheaper) |
| ROE | 12.59% | 1238.00% | Weak |
| Net Margin | 16.40% | -5096.00% (disorted) | Strong |
| Debt/Equity | 0.24 | 1.23 | Strong (Low Leverage) |
| Current Ratio | 1.55 | 2.47 | Neutral |
| ROA | 7.34% | -191998.00% (disorted) | Weak |
0667.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China East Education Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
22.77%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
184.85%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
-100.00%
Industry Style: Defensive, Dividend, Low Volatility
Declining