China Everbright Greentech Limited
China Everbright Greentech Limited Fundamental Analysis
China Everbright Greentech Limited (1257.HK) shows weak financial fundamentals with a PE ratio of 11.90, profit margin of 2.19%, and ROE of 1.35%. The company generates $6.7B in annual revenue with weak year-over-year growth of -8.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 2.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 1257.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1257.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1257.HK trades at attractive valuation levels.
Growth Score
Weak1257.HK faces weak or negative growth trends.
Financial Health Score
Moderate1257.HK shows balanced financial health with some risks.
Profitability Score
Moderate1257.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1257.HK Expensive or Cheap?
P/E Ratio
1257.HK trades at 11.90 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1257.HK's PEG of 0.09 indicates potential undervaluation.
Price to Book
The market values China Everbright Greentech Limited at 0.18 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -7.67 times EBITDA. This is generally considered low.
How Well Does 1257.HK Make Money?
Net Profit Margin
For every $100 in sales, China Everbright Greentech Limited keeps $2.19 as profit after all expenses.
Operating Margin
Core operations generate 17.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.35 in profit for every $100 of shareholder equity.
ROA
China Everbright Greentech Limited generates $0.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Everbright Greentech Limited produces operating cash flow of $1.27B, showing steady but balanced cash generation.
Free Cash Flow
China Everbright Greentech Limited generates strong free cash flow of $787.53M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.38 in free cash annually.
FCF Yield
1257.HK converts 44.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.18
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How 1257.HK Stacks Against Its Sector Peers
| Metric | 1257.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.90 | 20.36 | Better (Cheaper) |
| ROE | 1.35% | 921.00% | Weak |
| Net Margin | 2.19% | 737.00% | Weak |
| Debt/Equity | 2.28 | 1.49 | Weak (High Leverage) |
| Current Ratio | 1.30 | 1.43 | Neutral |
| ROA | 0.43% | -6170.00% (disorted) | Weak |
1257.HK outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews China Everbright Greentech Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-24.81%
Industry Style: Defensive, Dividend, Income
DecliningEPS CAGR
-125.62%
Industry Style: Defensive, Dividend, Income
DecliningFCF CAGR
1167.59%
Industry Style: Defensive, Dividend, Income
High Growth