China Literature Limited
China Literature Limited Fundamental Analysis
China Literature Limited (0772.HK) shows moderate financial fundamentals with a PE ratio of -30.89, profit margin of -10.26%, and ROE of -4.08%. The company generates $7.3B in annual revenue with strong year-over-year growth of 15.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0772.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0772.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0772.HK trades at attractive valuation levels.
Growth Score
Moderate0772.HK shows steady but slowing expansion.
Financial Health Score
Excellent0772.HK maintains a strong and stable balance sheet.
Profitability Score
Weak0772.HK struggles to sustain strong margins.
Key Financial Metrics
Is 0772.HK Expensive or Cheap?
P/E Ratio
0772.HK trades at -30.89 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 0772.HK's PEG of 0.05 indicates potential undervaluation.
Price to Book
The market values China Literature Limited at 1.32 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 48.54 times EBITDA. This signals the market has high growth expectations.
How Well Does 0772.HK Make Money?
Net Profit Margin
For every $100 in sales, China Literature Limited keeps $-10.26 as profit after all expenses.
Operating Margin
Core operations generate 12.85 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-4.08 in profit for every $100 of shareholder equity.
ROA
China Literature Limited generates $-3.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Literature Limited produces operating cash flow of $840.49M, showing steady but balanced cash generation.
Free Cash Flow
China Literature Limited produces free cash flow of $667.35M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.65 in free cash annually.
FCF Yield
0772.HK converts 2.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-30.89
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.05
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.32
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.04
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How 0772.HK Stacks Against Its Sector Peers
| Metric | 0772.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -30.89 | 22.85 | Better (Cheaper) |
| ROE | -4.08% | 996.00% | Weak |
| Net Margin | -10.26% | -61402.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 1.12 | Strong (Low Leverage) |
| Current Ratio | 3.21 | 1.65 | Strong Liquidity |
| ROA | -3.47% | -583089.00% (disorted) | Weak |
0772.HK outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China Literature Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-2.54%
Industry Style: Growth, Technology, Streaming
DecliningEPS CAGR
-119.12%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
223.49%
Industry Style: Growth, Technology, Streaming
High Growth