Tongcheng Travel Holdings Limited
Tongcheng Travel Holdings Limited Fundamental Analysis
Tongcheng Travel Holdings Limited (0780.HK) shows moderate financial fundamentals with a PE ratio of 18.35, profit margin of 12.26%, and ROE of 10.95%. The company generates $17.2B in annual revenue with strong year-over-year growth of 45.77%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 67.5/100 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 0780.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0780.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0780.HK trades at attractive valuation levels.
Growth Score
Excellent0780.HK delivers strong and consistent growth momentum.
Financial Health Score
Excellent0780.HK maintains a strong and stable balance sheet.
Profitability Score
Weak0780.HK struggles to sustain strong margins.
Key Financial Metrics
Is 0780.HK Expensive or Cheap?
P/E Ratio
0780.HK trades at 18.35 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 0780.HK's PEG of -1.99 indicates potential undervaluation.
Price to Book
The market values Tongcheng Travel Holdings Limited at 1.93 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.33 times EBITDA. This is generally considered low.
How Well Does 0780.HK Make Money?
Net Profit Margin
For every $100 in sales, Tongcheng Travel Holdings Limited keeps $12.26 as profit after all expenses.
Operating Margin
Core operations generate 17.59 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.95 in profit for every $100 of shareholder equity.
ROA
Tongcheng Travel Holdings Limited generates $5.65 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Tongcheng Travel Holdings Limited generates strong operating cash flow of $4.76B, reflecting robust business health.
Free Cash Flow
Tongcheng Travel Holdings Limited generates strong free cash flow of $4.53B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.93 in free cash annually.
FCF Yield
0780.HK converts 13.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.99
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.38
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How 0780.HK Stacks Against Its Sector Peers
| Metric | 0780.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.35 | 23.80 | Better (Cheaper) |
| ROE | 10.95% | 1105.00% | Weak |
| Net Margin | 12.26% | -512.00% (disorted) | Strong |
| Debt/Equity | 0.24 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.38 | 2.64 | Neutral |
| ROA | 5.65% | -8048.00% (disorted) | Weak |
0780.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 Tongcheng Travel Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
110.39%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
157.37%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
57.03%
Industry Style: Cyclical, Growth, Discretionary
High Growth