Chanjet Information Technology Company Limited
Chanjet Information Technology Company Limited Fundamental Analysis
Chanjet Information Technology Company Limited (1588.HK) shows moderate financial fundamentals with a PE ratio of 25.70, profit margin of 7.45%, and ROE of 8.53%. The company generates $1.1B in annual revenue with strong year-over-year growth of 19.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.1/100 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 1588.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1588.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate1588.HK shows balanced valuation metrics.
Growth Score
Moderate1588.HK shows steady but slowing expansion.
Financial Health Score
Excellent1588.HK maintains a strong and stable balance sheet.
Profitability Score
Weak1588.HK struggles to sustain strong margins.
Key Financial Metrics
Is 1588.HK Expensive or Cheap?
P/E Ratio
1588.HK trades at 25.70 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 1588.HK's PEG of 0.29 indicates potential undervaluation.
Price to Book
The market values Chanjet Information Technology Company Limited at 2.17 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 73.19 times EBITDA. This signals the market has high growth expectations.
How Well Does 1588.HK Make Money?
Net Profit Margin
For every $100 in sales, Chanjet Information Technology Company Limited keeps $7.45 as profit after all expenses.
Operating Margin
Core operations generate 2.27 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
Chanjet Information Technology Company Limited generates $4.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Chanjet Information Technology Company Limited produces operating cash flow of $125.44M, showing steady but balanced cash generation.
Free Cash Flow
Chanjet Information Technology Company Limited generates strong free cash flow of $121.99M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.38 in free cash annually.
FCF Yield
1588.HK converts 5.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
25.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.17
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.91
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.01
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.75
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
0.02
vs 25 benchmark
How 1588.HK Stacks Against Its Sector Peers
| Metric | 1588.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 25.70 | 33.61 | Better (Cheaper) |
| ROE | 8.53% | 1020.00% | Weak |
| Net Margin | 7.45% | -56528.00% (disorted) | Weak |
| Debt/Equity | 0.01 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 1.75 | 5.65 | Neutral |
| ROA | 4.26% | -291484.00% (disorted) | Weak |
1588.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 Chanjet Information Technology Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
106.21%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-63.93%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
-31.11%
Industry Style: Growth, Innovation, High Beta
Declining