CNOOC Limited Fundamental Analysis (HKSE: 0883.HK)
CNOOC Limited Fundamental Analysis (HKSE: 0883.HK)
CNOOC Limited (HKSE: 0883.HK) shows moderate financial fundamentals with a PE ratio of 8.44, profit margin of 30.66%, and ROE of 15.36%. The company generates $398.2B in annual revenue with weak year-over-year growth of -5.30%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.3/100 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 0883.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent0883.HK demonstrates superior asset utilization.
Valuation Score
Excellent0883.HK trades at attractive valuation levels.
Growth Score
Weak0883.HK faces weak or negative growth trends.
Financial Health Score
Excellent0883.HK maintains a strong and stable balance sheet.
Profitability Score
Excellent0883.HK achieves industry-leading margins.
Key Financial Metrics
Is 0883.HK Expensive or Cheap?
P/E Ratio
0883.HK trades at 8.44 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 0883.HK's PEG of 0.41 indicates potential undervaluation.
Price to Book
The market values CNOOC Limited at 1.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.12 times EBITDA. This is generally considered low.
How Well Does 0883.HK Make Money?
Net Profit Margin
For every $100 in sales, CNOOC Limited keeps $30.66 as profit after all expenses.
Operating Margin
Core operations generate 43.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.36 in profit for every $100 of shareholder equity.
ROA
CNOOC Limited generates $11.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CNOOC Limited generates strong operating cash flow of $210.66B, reflecting robust business health.
Free Cash Flow
CNOOC Limited generates strong free cash flow of $99.13B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.09 in free cash annually.
FCF Yield
0883.HK converts 9.69% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.44
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.41
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.57
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.11
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How 0883.HK Stacks Against Its Sector Peers
| Metric | 0883.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.44 | 20.94 | Better (Cheaper) |
| ROE | 15.36% | 1271.00% | Weak |
| Net Margin | 30.66% | 1265.00% | Weak |
| Debt/Equity | 0.09 | -1.74 (disorted) | Distorted |
| Current Ratio | 3.24 | 2.22 | Strong Liquidity |
| ROA | 11.11% | 4309.00% | Weak |
0883.HK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CNOOC Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
140.76%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
359.52%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
134.54%
Industry Style: Cyclical, Value, Commodity
High Growth