Guangzhou Rural Commercial Bank Co., Ltd.
Guangzhou Rural Commercial Bank Co., Ltd. Fundamental Analysis
Guangzhou Rural Commercial Bank Co., Ltd. (1551.HK) shows moderate financial fundamentals with a PE ratio of 9.06, profit margin of 10.11%, and ROE of 2.24%. The company generates $20.9B in annual revenue with weak year-over-year growth of -53.90%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -38.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 1551.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1551.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1551.HK trades at attractive valuation levels.
Growth Score
Weak1551.HK faces weak or negative growth trends.
Financial Health Score
Weak1551.HK carries high financial risk with limited liquidity.
Profitability Score
Moderate1551.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1551.HK Expensive or Cheap?
P/E Ratio
1551.HK trades at 9.06 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1551.HK's PEG of -1.34 indicates potential undervaluation.
Price to Book
The market values Guangzhou Rural Commercial Bank Co., Ltd. at 0.20 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -315.99 times EBITDA. This is generally considered low.
How Well Does 1551.HK Make Money?
Net Profit Margin
For every $100 in sales, Guangzhou Rural Commercial Bank Co., Ltd. keeps $10.11 as profit after all expenses.
Operating Margin
Core operations generate 10.83 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.24 in profit for every $100 of shareholder equity.
ROA
Guangzhou Rural Commercial Bank Co., Ltd. generates $0.15 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Guangzhou Rural Commercial Bank Co., Ltd. generates strong operating cash flow of $22.58B, reflecting robust business health.
Free Cash Flow
Guangzhou Rural Commercial Bank Co., Ltd. generates strong free cash flow of $22.24B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.54 in free cash annually.
FCF Yield
1551.HK converts 1.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.34
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.02
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.002
vs 25 benchmark
How 1551.HK Stacks Against Its Sector Peers
| Metric | 1551.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.06 | 18.59 | Better (Cheaper) |
| ROE | 2.24% | 801.00% | Weak |
| Net Margin | 10.11% | -498.00% (disorted) | Strong |
| Debt/Equity | 2.14 | 0.98 | Weak (High Leverage) |
| Current Ratio | 0.74 | 661.40 | Weak Liquidity |
| ROA | 0.15% | -21324.00% (disorted) | Weak |
1551.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 Guangzhou Rural Commercial Bank Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-58.22%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
-76.35%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
12.15%
Industry Style: Value, Dividend, Cyclical
High Growth