Postal Savings Bank of China Co., Ltd.
Postal Savings Bank of China Co., Ltd. Fundamental Analysis
Postal Savings Bank of China Co., Ltd. (1658.HK) shows moderate financial fundamentals with a PE ratio of 5.99, profit margin of 19.43%, and ROE of 8.06%. The company generates $450.2B in annual revenue with strong year-over-year growth of 10.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 53.0/100 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 1658.HK's fundamental strength across five key dimensions:
Efficiency Score
Weak1658.HK struggles to generate sufficient returns from assets.
Valuation Score
Moderate1658.HK shows balanced valuation metrics.
Growth Score
Moderate1658.HK shows steady but slowing expansion.
Financial Health Score
Excellent1658.HK maintains a strong and stable balance sheet.
Profitability Score
Weak1658.HK struggles to sustain strong margins.
Key Financial Metrics
Is 1658.HK Expensive or Cheap?
P/E Ratio
1658.HK trades at 5.99 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, 1658.HK's PEG of 4.91 indicates potential overvaluation.
Price to Book
The market values Postal Savings Bank of China Co., Ltd. at 0.51 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.75 times EBITDA. This is generally considered low.
How Well Does 1658.HK Make Money?
Net Profit Margin
For every $100 in sales, Postal Savings Bank of China Co., Ltd. keeps $19.43 as profit after all expenses.
Operating Margin
Core operations generate 25.54 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.06 in profit for every $100 of shareholder equity.
ROA
Postal Savings Bank of China Co., Ltd. generates $0.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Postal Savings Bank of China Co., Ltd. generates limited operating cash flow of $-44.29B, signaling weaker underlying cash strength.
Free Cash Flow
Postal Savings Bank of China Co., Ltd. generates weak or negative free cash flow of $-52.78B, restricting financial flexibility.
FCF Per Share
Each share generates $-0.44 in free cash annually.
FCF Yield
1658.HK converts -10.06% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.99
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.91
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.51
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.16
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.97
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.12
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.006
vs 25 benchmark
How 1658.HK Stacks Against Its Sector Peers
| Metric | 1658.HK Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.99 | 18.97 | Better (Cheaper) |
| ROE | 8.06% | 804.00% | Weak |
| Net Margin | 19.43% | -7722.00% (disorted) | Strong |
| Debt/Equity | 0.97 | 2.38 | Strong (Low Leverage) |
| Current Ratio | 5.12 | 561.06 | Strong Liquidity |
| ROA | 0.45% | -21175.00% (disorted) | Weak |
1658.HK outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Postal Savings Bank of China Co., Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
9.15%
Industry Style: Value, Dividend, Cyclical
GrowingEPS CAGR
-1.17%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-52.36%
Industry Style: Value, Dividend, Cyclical
Declining