Quanzhou Huixin Micro-credit Co., Ltd.
Quanzhou Huixin Micro-credit Co., Ltd. Fundamental Analysis
Quanzhou Huixin Micro-credit Co., Ltd. (1577.HK) shows strong financial fundamentals with a PE ratio of 7.65, profit margin of 67.47%, and ROE of 6.16%. The company generates $0.1B in annual revenue with strong year-over-year growth of 15.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.2/100 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 1577.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1577.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1577.HK trades at attractive valuation levels.
Growth Score
Excellent1577.HK delivers strong and consistent growth momentum.
Financial Health Score
Moderate1577.HK shows balanced financial health with some risks.
Profitability Score
Moderate1577.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1577.HK Expensive or Cheap?
P/E Ratio
1577.HK trades at 7.65 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1577.HK's PEG of 0.45 indicates potential undervaluation.
Price to Book
The market values Quanzhou Huixin Micro-credit Co., Ltd. at 0.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.82 times EBITDA. This is generally considered low.
How Well Does 1577.HK Make Money?
Net Profit Margin
For every $100 in sales, Quanzhou Huixin Micro-credit Co., Ltd. keeps $67.47 as profit after all expenses.
Operating Margin
Core operations generate 93.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.16 in profit for every $100 of shareholder equity.
ROA
Quanzhou Huixin Micro-credit Co., Ltd. generates $5.40 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Quanzhou Huixin Micro-credit Co., Ltd. generates strong operating cash flow of $70.84M, reflecting robust business health.
Free Cash Flow
Quanzhou Huixin Micro-credit Co., Ltd. generates strong free cash flow of $69.97M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.10 in free cash annually.
FCF Yield
1577.HK converts 11.81% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.65
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.09
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.55
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How 1577.HK Stacks Against Its Sector Peers
| Metric | 1577.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.65 | 18.93 | Better (Cheaper) |
| ROE | 6.16% | 815.00% | Weak |
| Net Margin | 67.47% | 845.00% | Weak |
| Debt/Equity | 0.09 | 0.88 | Strong (Low Leverage) |
| Current Ratio | 0.55 | 619.76 | Weak Liquidity |
| ROA | 5.40% | -24734.00% (disorted) | Weak |
1577.HK outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Quanzhou Huixin Micro-credit Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
2.94%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
42.36%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
42.32%
Industry Style: Value, Dividend, Cyclical
High Growth