Metallurgical Corporation of China Ltd.
Metallurgical Corporation of China Ltd. Fundamental Analysis
Metallurgical Corporation of China Ltd. (1618.HK) shows weak financial fundamentals with a PE ratio of 10.73, profit margin of 0.29%, and ROE of 0.95%. The company generates $1603.2B in annual revenue with weak year-over-year growth of -12.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 10.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze 1618.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1618.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate1618.HK shows balanced valuation metrics.
Growth Score
Weak1618.HK faces weak or negative growth trends.
Financial Health Score
Excellent1618.HK maintains a strong and stable balance sheet.
Profitability Score
Moderate1618.HK maintains healthy but balanced margins.
Key Financial Metrics
Is 1618.HK Expensive or Cheap?
P/E Ratio
1618.HK trades at 10.73 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1618.HK's PEG of 4.28 indicates potential overvaluation.
Price to Book
The market values Metallurgical Corporation of China Ltd. at 0.09 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.03 times EBITDA. This is generally considered low.
How Well Does 1618.HK Make Money?
Net Profit Margin
For every $100 in sales, Metallurgical Corporation of China Ltd. keeps $0.29 as profit after all expenses.
Operating Margin
Core operations generate 2.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.95 in profit for every $100 of shareholder equity.
ROA
Metallurgical Corporation of China Ltd. generates $0.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Metallurgical Corporation of China Ltd. generates limited operating cash flow of $52.74B, signaling weaker underlying cash strength.
Free Cash Flow
Metallurgical Corporation of China Ltd. generates weak or negative free cash flow of $30.55B, restricting financial flexibility.
FCF Per Share
Each share generates $0.87 in free cash annually.
FCF Yield
1618.HK converts 17.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.73
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.09
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.11
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.42
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.05
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.010
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How 1618.HK Stacks Against Its Sector Peers
| Metric | 1618.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.73 | 25.85 | Better (Cheaper) |
| ROE | 0.95% | 1270.00% | Weak |
| Net Margin | 0.29% | -41768.00% (disorted) | Weak |
| Debt/Equity | 0.42 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 1.05 | 10.04 | Neutral |
| ROA | 0.16% | -1493983.00% (disorted) | Weak |
1618.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 Metallurgical Corporation of China Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
18.02%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
-25.99%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-67.68%
Industry Style: Cyclical, Value, Infrastructure
Declining