CK Infrastructure Holdings Limited Fundamental Analysis (HKSE: 1038.HK)
CK Infrastructure Holdings Limited Fundamental Analysis (HKSE: 1038.HK)
CK Infrastructure Holdings Limited (HKSE: 1038.HK) shows moderate financial fundamentals with a PE ratio of 6.55, profit margin of 5.98%, and ROE of 17.92%. The company generates $4.3B in annual revenue with weak year-over-year growth of -11.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 1038.HK's fundamental strength across five key dimensions:
Efficiency Score
Excellent1038.HK demonstrates superior asset utilization.
Valuation Score
Excellent1038.HK trades at attractive valuation levels.
Growth Score
Weak1038.HK faces weak or negative growth trends.
Financial Health Score
Excellent1038.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate1038.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1038.HK Expensive or Cheap?
P/E Ratio
1038.HK trades at 6.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1038.HK's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values CK Infrastructure Holdings Limited at 1.04 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 803.27 times EBITDA. This signals the market has high growth expectations.
How Well Does 1038.HK Make Money?
Net Profit Margin
For every $100 in sales, CK Infrastructure Holdings Limited keeps $5.98 as profit after all expenses.
Operating Margin
Core operations generate -3.46 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.92 in profit for every $100 of shareholder equity.
ROA
CK Infrastructure Holdings Limited generates $13.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CK Infrastructure Holdings Limited generates strong operating cash flow of $2.34B, reflecting robust business health.
Free Cash Flow
CK Infrastructure Holdings Limited generates strong free cash flow of $2.01B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.80 in free cash annually.
FCF Yield
1038.HK converts 1.22% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
38.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.88
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.18
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
-0.00
vs 25 benchmark
How 1038.HK Stacks Against Its Sector Peers
| Metric | 1038.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.55 | 19.54 | Better (Cheaper) |
| ROE | 17.92% | 981.00% | Weak |
| Net Margin | 598.01% | -576.00% (disorted) | Strong |
| Debt/Equity | 0.14 | 1.74 | Strong (Low Leverage) |
| Current Ratio | 3.88 | 1.71 | Strong Liquidity |
| ROA | 13.77% | 4551306.00% | Weak |
1038.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 CK Infrastructure Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-38.49%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
18.89%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-73.52%
Industry Style: Defensive, Dividend, Income
Declining