China Leon Inspection Holding Limited
China Leon Inspection Holding Limited Fundamental Analysis
China Leon Inspection Holding Limited (1586.HK) shows weak financial fundamentals with a PE ratio of 24.47, profit margin of 2.89%, and ROE of 8.53%. The company generates $1.3B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.6/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 1586.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1586.HK struggles to generate sufficient returns from assets.
Valuation Score
Excellent1586.HK trades at attractive valuation levels.
Growth Score
Moderate1586.HK shows steady but slowing expansion.
Financial Health Score
Excellent1586.HK maintains a strong and stable balance sheet.
Profitability Score
Weak1586.HK struggles to sustain strong margins.
Key Financial Metrics
Is 1586.HK Expensive or Cheap?
P/E Ratio
1586.HK trades at 24.47 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 1586.HK's PEG of -0.45 indicates potential undervaluation.
Price to Book
The market values China Leon Inspection Holding Limited at 2.12 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.76 times EBITDA. This is generally considered low.
How Well Does 1586.HK Make Money?
Net Profit Margin
For every $100 in sales, China Leon Inspection Holding Limited keeps $2.89 as profit after all expenses.
Operating Margin
Core operations generate 7.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.53 in profit for every $100 of shareholder equity.
ROA
China Leon Inspection Holding Limited generates $3.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
China Leon Inspection Holding Limited generates limited operating cash flow of $123.96M, signaling weaker underlying cash strength.
Free Cash Flow
China Leon Inspection Holding Limited produces free cash flow of $65.09M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.11 in free cash annually.
FCF Yield
1586.HK converts 7.86% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
24.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.45
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.12
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.47
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How 1586.HK Stacks Against Its Sector Peers
| Metric | 1586.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 24.47 | 26.34 | Neutral |
| ROE | 8.53% | 1277.00% | Weak |
| Net Margin | 2.89% | -41677.00% (disorted) | Weak |
| Debt/Equity | 0.47 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 1.90 | 10.10 | Neutral |
| ROA | 3.79% | -1507984.00% (disorted) | Weak |
1586.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 Leon Inspection Holding Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure