China Medical System Holdings Limited
China Medical System Holdings Limited Fundamental Analysis
China Medical System Holdings Limited (0867.HK) shows weak financial fundamentals with a PE ratio of 20.58, profit margin of 18.17%, and ROE of 8.60%. The company generates $8.2B in annual revenue with weak year-over-year growth of -6.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.3/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0867.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0867.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0867.HK trades at attractive valuation levels.
Growth Score
Weak0867.HK faces weak or negative growth trends.
Financial Health Score
Excellent0867.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate0867.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 0867.HK Expensive or Cheap?
P/E Ratio
0867.HK trades at 20.58 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 0867.HK's PEG of -2.28 indicates potential undervaluation.
Price to Book
The market values China Medical System Holdings Limited at 1.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 18.02 times EBITDA. This signals the market has high growth expectations.
How Well Does 0867.HK Make Money?
Net Profit Margin
For every $100 in sales, China Medical System Holdings Limited keeps $18.17 as profit after all expenses.
Operating Margin
Core operations generate 19.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.60 in profit for every $100 of shareholder equity.
ROA
China Medical System Holdings Limited generates $7.70 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Medical System Holdings Limited produces operating cash flow of $959.72M, showing steady but balanced cash generation.
Free Cash Flow
China Medical System Holdings Limited produces free cash flow of $497.37M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.20 in free cash annually.
FCF Yield
0867.HK converts 1.61% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
20.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-2.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.04
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How 0867.HK Stacks Against Its Sector Peers
| Metric | 0867.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 20.58 | 28.45 | Better (Cheaper) |
| ROE | 8.60% | 763.00% | Weak |
| Net Margin | 18.17% | -45265.00% (disorted) | Strong |
| Debt/Equity | 0.04 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 6.33 | 2795.60 | Strong Liquidity |
| ROA | 7.70% | -16588.00% (disorted) | Weak |
0867.HK outperforms its industry in 4 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 Medical System Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
25.66%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-15.58%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-49.27%
Industry Style: Defensive, Growth, Innovation
Declining