Shoucheng Holdings Limited
Shoucheng Holdings Limited Fundamental Analysis
Shoucheng Holdings Limited (0697.HK) shows moderate financial fundamentals with a PE ratio of 44.92, profit margin of 21.59%, and ROE of 3.06%. The company generates $1.4B in annual revenue with strong year-over-year growth of 37.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.5/100 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 0697.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0697.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate0697.HK shows balanced valuation metrics.
Growth Score
Moderate0697.HK shows steady but slowing expansion.
Financial Health Score
Excellent0697.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate0697.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 0697.HK Expensive or Cheap?
P/E Ratio
0697.HK trades at 44.92 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 0697.HK's PEG of -1.26 indicates potential undervaluation.
Price to Book
The market values Shoucheng Holdings Limited at 1.26 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 36.34 times EBITDA. This signals the market has high growth expectations.
How Well Does 0697.HK Make Money?
Net Profit Margin
For every $100 in sales, Shoucheng Holdings Limited keeps $21.59 as profit after all expenses.
Operating Margin
Core operations generate 36.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.06 in profit for every $100 of shareholder equity.
ROA
Shoucheng Holdings Limited generates $1.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Shoucheng Holdings Limited generates strong operating cash flow of $699.83M, reflecting robust business health.
Free Cash Flow
Shoucheng Holdings Limited generates strong free cash flow of $689.77M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.08 in free cash annually.
FCF Yield
0697.HK converts 5.12% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.92
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.32
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
0.04
vs 25 benchmark
How 0697.HK Stacks Against Its Sector Peers
| Metric | 0697.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.92 | 25.85 | Worse (Expensive) |
| ROE | 3.06% | 1270.00% | Weak |
| Net Margin | 21.59% | -41768.00% (disorted) | Strong |
| Debt/Equity | 0.27 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 6.32 | 10.04 | Strong Liquidity |
| ROA | 1.99% | -1493983.00% (disorted) | Weak |
0697.HK outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Shoucheng Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
129.17%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-30.83%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-24.53%
Industry Style: Cyclical, Value, Infrastructure
Declining