Chuan Holdings Limited
Chuan Holdings Limited Fundamental Analysis
Chuan Holdings Limited (1420.HK) shows moderate financial fundamentals with a PE ratio of 5.16, profit margin of 9.32%, and ROE of 11.24%. The company generates $0.1B in annual revenue with strong year-over-year growth of 18.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.7/100 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 1420.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1420.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1420.HK trades at attractive valuation levels.
Growth Score
Moderate1420.HK shows steady but slowing expansion.
Financial Health Score
Excellent1420.HK maintains a strong and stable balance sheet.
Profitability Score
Weak1420.HK struggles to sustain strong margins.
Key Financial Metrics
Is 1420.HK Expensive or Cheap?
P/E Ratio
1420.HK trades at 5.16 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1420.HK's PEG of 0.62 indicates potential undervaluation.
Price to Book
The market values Chuan Holdings Limited at 0.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.68 times EBITDA. This is generally considered low.
How Well Does 1420.HK Make Money?
Net Profit Margin
For every $100 in sales, Chuan Holdings Limited keeps $9.32 as profit after all expenses.
Operating Margin
Core operations generate 2.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.24 in profit for every $100 of shareholder equity.
ROA
Chuan Holdings Limited generates $6.25 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Chuan Holdings Limited produces operating cash flow of $25.78M, showing steady but balanced cash generation.
Free Cash Flow
Chuan Holdings Limited generates strong free cash flow of $21.33M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.02 in free cash annually.
FCF Yield
1420.HK converts 39.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.16
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.45
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.45
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.04
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How 1420.HK Stacks Against Its Sector Peers
| Metric | 1420.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.16 | 25.85 | Better (Cheaper) |
| ROE | 11.24% | 1270.00% | Weak |
| Net Margin | 9.32% | -41768.00% (disorted) | Weak |
| Debt/Equity | 0.45 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 2.04 | 10.04 | Strong Liquidity |
| ROA | 6.25% | -1493983.00% (disorted) | Weak |
1420.HK outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Chuan Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.73%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
533.40%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
31.03%
Industry Style: Cyclical, Value, Infrastructure
High Growth