Sinopec Kantons Holdings Limited Fundamental Analysis (HKSE: 0934.HK)
Sinopec Kantons Holdings Limited Fundamental Analysis (HKSE: 0934.HK)
Sinopec Kantons Holdings Limited (HKSE: 0934.HK) shows weak financial fundamentals with a PE ratio of 10.90, profit margin of 1.21%, and ROE of 5.10%. The company generates $0.7B in annual revenue with weak year-over-year growth of -1.27%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 49.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 0934.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak0934.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent0934.HK trades at attractive valuation levels.
Growth Score
Weak0934.HK faces weak or negative growth trends.
Financial Health Score
Excellent0934.HK maintains a strong and stable balance sheet.
Profitability Score
Weak0934.HK struggles to sustain strong margins.
Key Financial Metrics
Is 0934.HK Expensive or Cheap?
P/E Ratio
0934.HK trades at 10.90 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 0934.HK's PEG of 0.84 indicates potential undervaluation.
Price to Book
The market values Sinopec Kantons Holdings Limited at 0.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 29.13 times EBITDA. This signals the market has high growth expectations.
How Well Does 0934.HK Make Money?
Net Profit Margin
For every $100 in sales, Sinopec Kantons Holdings Limited keeps $1.21 as profit after all expenses.
Operating Margin
Core operations generate 27.08 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.10 in profit for every $100 of shareholder equity.
ROA
Sinopec Kantons Holdings Limited generates $4.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sinopec Kantons Holdings Limited generates strong operating cash flow of $1.33B, reflecting robust business health.
Free Cash Flow
Sinopec Kantons Holdings Limited generates strong free cash flow of $1.29B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.52 in free cash annually.
FCF Yield
0934.HK converts 13.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
13.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
24.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How 0934.HK Stacks Against Its Sector Peers
| Metric | 0934.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.90 | 21.41 | Better (Cheaper) |
| ROE | 5.10% | 1277.00% | Weak |
| Net Margin | 120.83% | 1313.00% | Weak |
| Debt/Equity | 0.00 | -1.74 (disorted) | Distorted |
| Current Ratio | 24.49 | 2.23 | Strong Liquidity |
| ROA | 4.92% | 4327.00% | Weak |
0934.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 Sinopec Kantons Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.55%
Industry Style: Cyclical, Value, Commodity
GrowingEPS CAGR
-27.84%
Industry Style: Cyclical, Value, Commodity
DecliningFCF CAGR
-85.01%
Industry Style: Cyclical, Value, Commodity
Declining