Putian Communication Group Limited

Putian Communication Group Limited Fundamental Analysis

1720.HKHKSE
TechnologyCommunication Equipment
HK$0.28
HK$0.03(11.11%)
Hong Kong Market opens in 39h 8m

Putian Communication Group Limited Fundamental Analysis

Putian Communication Group Limited (1720.HK) shows weak financial fundamentals with a PE ratio of 10.52, profit margin of 3.62%, and ROE of 4.16%. The company generates $0.7B in annual revenue with N/A year-over-year growth of N/A.

Key Strengths

Cash Position23.38%
PEG Ratio0.33
Current Ratio1.56

Areas of Concern

ROE4.16%
Operating Margin3.33%
We analyze 1720.HK's fundamental strength across five key dimensions.

The stock receives a Fundamental Health Score of 34.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.

Fundamental Health Score

F
34.1/100

We analyze 1720.HK's fundamental strength across five key dimensions:

Efficiency Score

Weak

1720.HK struggles to generate sufficient returns from assets.

ROA > 10%
1.93%

Valuation Score

Excellent

1720.HK trades at attractive valuation levels.

PE < 25
10.52
PEG Ratio < 2
0.33

Growth Score

Moderate

1720.HK shows steady but slowing expansion.

Revenue Growth > 5%
N/A
EPS Growth > 10%
N/A

Financial Health Score

Excellent

1720.HK maintains a strong and stable balance sheet.

Debt/Equity < 1
0.74
Current Ratio > 1
1.56

Profitability Score

Weak

1720.HK struggles to sustain strong margins.

ROE > 15%
4.16%
Net Margin ≥ 15%
3.62%
Positive Free Cash Flow
No

Key Financial Metrics

Is 1720.HK Expensive or Cheap?

P/E Ratio

1720.HK trades at 10.52 times earnings. This suggests potential undervaluation.

10.52

PEG Ratio

When adjusting for growth, 1720.HK's PEG of 0.33 indicates potential undervaluation.

0.33

Price to Book

The market values Putian Communication Group Limited at 0.43 times its book value. This may indicate undervaluation.

0.43

EV/EBITDA

Enterprise value stands at -1.34 times EBITDA. This is generally considered low.

-1.34

How Well Does 1720.HK Make Money?

Net Profit Margin

For every $100 in sales, Putian Communication Group Limited keeps $3.62 as profit after all expenses.

3.62%

Operating Margin

Core operations generate 3.33 in profit for every $100 in revenue, before interest and taxes.

3.33%

ROE

Management delivers $4.16 in profit for every $100 of shareholder equity.

4.16%

ROA

Putian Communication Group Limited generates $1.93 in profit for every $100 in assets, demonstrating efficient asset deployment.

1.93%

Following the Money - Real Cash Generation

Operating Cash Flow

Putian Communication Group Limited generates limited operating cash flow of $-17.99M, signaling weaker underlying cash strength.

$-17.99M

Free Cash Flow

Putian Communication Group Limited generates weak or negative free cash flow of $-50.13M, restricting financial flexibility.

$-50.13M

FCF Per Share

Each share generates $-0.05 in free cash annually.

$-0.05

FCF Yield

1720.HK converts -18.84% of its market value into free cash.

-18.84%

Financial Ratios Analysis

Valuation Ratios

P/E Ratio

Price to earnings ratio

10.52

vs 25 benchmark

PEG Ratio

Price/earnings to growth ratio

0.33

vs 25 benchmark

P/B Ratio

Price to book value ratio

0.43

vs 25 benchmark

P/S Ratio

Price to sales ratio

0.38

vs 25 benchmark

Financial Health

Debt/Equity

Total debt to shareholders' equity

0.74

vs 25 benchmark

Current Ratio

Current assets to current liabilities

1.56

vs 25 benchmark

Efficiency Ratios

ROE

Return on equity percentage

0.04

vs 25 benchmark

ROA

Return on assets percentage

0.02

vs 25 benchmark

ROCE

Return on capital employed

0.03

vs 25 benchmark

How 1720.HK Stacks Against Its Sector Peers

Metric1720.HK ValueSector AveragePerformance
P/E Ratio10.5235.98 Better (Cheaper)
ROE4.16%735.00% Weak
Net Margin3.62%-140434.00% (disorted) Weak
Debt/Equity0.740.46 Weak (High Leverage)
Current Ratio1.563.40 Neutral
ROA1.93%179.00% Weak

1720.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 Putian Communication Group 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: Growth, Innovation, High Beta

EPS CAGR

N/A

Industry Style: Growth, Innovation, High Beta

FCF CAGR

N/A

Industry Style: Growth, Innovation, High Beta

Fundamental Analysis FAQ