New China Life Insurance Company Ltd.
New China Life Insurance Company Ltd. Fundamental Analysis
New China Life Insurance Company Ltd. (1336.HK) shows strong financial fundamentals with a PE ratio of 3.03, profit margin of 29.62%, and ROE of 44.71%. The company generates $180.1B in annual revenue with strong year-over-year growth of 49.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 1336.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1336.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1336.HK trades at attractive valuation levels.
Growth Score
Moderate1336.HK shows steady but slowing expansion.
Financial Health Score
Weak1336.HK carries high financial risk with limited liquidity.
Profitability Score
Excellent1336.HK achieves industry-leading margins.
Key Financial Metrics
Is 1336.HK Expensive or Cheap?
P/E Ratio
1336.HK trades at 3.03 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1336.HK's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values New China Life Insurance Company Ltd. at 1.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.20 times EBITDA. This is generally considered low.
How Well Does 1336.HK Make Money?
Net Profit Margin
For every $100 in sales, New China Life Insurance Company Ltd. keeps $29.62 as profit after all expenses.
Operating Margin
Core operations generate 32.12 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $44.71 in profit for every $100 of shareholder equity.
ROA
New China Life Insurance Company Ltd. generates $2.18 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
New China Life Insurance Company Ltd. generates strong operating cash flow of $172.49B, reflecting robust business health.
Free Cash Flow
New China Life Insurance Company Ltd. generates strong free cash flow of $179.76B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $44.81 in free cash annually.
FCF Yield
1336.HK converts 86.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
3.03
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.92
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.45
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How 1336.HK Stacks Against Its Sector Peers
| Metric | 1336.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 3.03 | 18.66 | Better (Cheaper) |
| ROE | 44.71% | 806.00% | Weak |
| Net Margin | 29.62% | -451.00% (disorted) | Strong |
| Debt/Equity | 1.92 | 1.00 | Weak (High Leverage) |
| Current Ratio | 0.00 | 662.02 | Weak Liquidity |
| ROA | 2.18% | -24409.00% (disorted) | Weak |
1336.HK outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews New China Life Insurance Company Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-60.93%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
80.13%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
128.67%
Industry Style: Value, Dividend, Cyclical
High Growth